PM hints at further sops for R

New Delhi, July 20 (UNI) Prime Minister Manmohan Singh today hinted at fiscal sops for promotion of R&D by the private sector and asked the Ministries of Commerce and Industry to prepare policy proposals for the Cabinet based on the inputs from the Investment Commission and National Manufacturing Competitiveness Council (NMCC).

"India's investment climate has improved and the economic outlook for the near future is positive, despite constraints due to high oil prices and gaps in infrastructure," Dr Manmohan Singh said in his address to the second meeting here of the Council for Trade and Industry.

The Prime Minister said the government would provide a supportive policy environment, including fiscal sops, for boosting Reserach and Development activities in the private setor to enable the Industry to become globally competitive.

"In our country, R&D expenditure is largely in the public sector.

We need to reverse this because it is investment in R&D which can keep you ahead of competition, Dr Manmohan Singh said.

In this connection, the Prime Minister wondered whether the industry has been able to take advantage of the "immense opportunities" that have emerged from the dismantling of the Multi Fibre Agreement.

"As I see trade data, I worry whether we are actually a beneficiary of the dismantling of a major trade barrier. Maybe we need better product R&D in textiles and garments. We also need R& D to develop competitiveness in sectors of industry where we are still not world class. Will we continue to be the exporters of iron ore or will be one o the largest steel manufacturers", Dr Manmohan Singh said.

The Prime Minister made an appeal to industry for creating employment and asked them to work for the welfare of the working class. This will improve the climate for investment by contributing to social and political stability.

He also asked the business community to pay special attention to issues like displacement of rural folk in areas where large industrial units were being set up. "There is no reason why there should be a confrontation between business class and rural poor.

Rather, the rural poor should welcome new industries in their areas since these do create employment opportunities", he said.

The focus of the meeting this evening, the second in a series, was consideration of the Reports of the Investment Commission and National Manufacturing Council.

The Prime Minister said these reports would be sent to the Chief Minister's of all states to get feedback from them.

He also asked the Indian industry to take a more serious look at investment and trade opportunities in South Asia, South East Asia, West Asia and Central Asia.

"I am aware of the concerns expressed by some of our businesses in this regard. Our government will be sensitive to genuine concerns," he said.

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