PM's suggestion taken in right spirit, says Mittal

New Delhi, May 25: Mr Sunil Mittal, the new CII President, today concurred with Prime Minister Manmohan Singh saying his suggestion that corporate salaries should not touch the roof has been taken in ''the right spirit'' but it cannot be legislated and business profitability cannot be limited.

''It is like a father's advice to his son. We have taken in the right spirit the Prime Minister's suggestion to desist from taking excessive emoluments,'' Mr Mittal said in his first media interaction after taking over the coveted post as CII President.

''Shortage of skills in key areas at the top level is a serious and genuine problem specifically in the services industry, which is facing pressure of high salaries,'' he said.

The Prime Minister in his address at the CII AGM yesterday had asked the promoters and senior executives to desist from excessive remuneration and discourage conspicuous consumption as a vulgur display of wealth could cause social unrest.

''In a country with extreme poverty, industry needs to be moderated in the emolument levels adopted. Rising income and wealth inequality, if not matched by a corresponding rise of the incomes across the nations, can lead to social unrest,'' Dr Manmohan Singh had stated.

Mr Mittal also endorsed Dr Singh's view that for growth to be sustainable it must be inclusive.

He said CII will act as a catalyst in the Rs 48,000 crore Bharat Nirman programme aimed at building rural infrastructure.

He said the Government needs to expand the rural electrification programme and needs to create National Water Corporation, National Grains Corporation and National Special Tourism Zones Authority to supplement its efforts at rural reconstruction.

Outlining the agenda for next year, Mr Mittal said CII will focus on developing human resources with its theme being 'Building People, Building Nation'.

He said an anti-poverty can ill afford not to have agriculture growth as its focus.

Mr Mittal said industry is confident that a 10 per cent GDP growth is feasible and forecast a 9.2 per cent growth for industry and 11.2 per cent growth for the services sector.

CII's projection for agriculture growth is 3.2 per cent for 2007-08.

He, however, felt there were downside risk to high growth, including hardening in interest rates, increase in input price and slow down in world output.

UNI
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