Centre reacts strongly against ASSOCHAM study

Bangalore, Oct 30 (UNI) The Centre today reacted strongly against an ASSOCHAM study, wich said that about 25 per cent of jobs will be cut across the different sectors in the country in the wake of the global efosys here.

Union Minister of State for Commerce and Power Jairam Ramesh said, ''The statement is completely outrageous and totally irresponsible. This is an attempt to arm twist the government and to try to force it to change its policies.'' He said the industry organisations should stop giving scary headlines.

Planning Commissioner Deputy Chairman Montek Singh Ahluwalia, who was also present on the occasion, said the statement was ''absolutely wrong and inconceivable.'' ''If the Association had said that there could be a drop of 25 per cent in creation of jobs in the coming days, it would have been more conceivable. But ASSOCHAM's statement is totally false,'' he said.

Media reports today quoted ASSOCHAM president Sajjan Jindal, stating in a statement after releasing the analysis on 'Jobs scenario post-Diwali,' as saying that lay-offs will begin in the next 10-day period across steel, cement, construction, real estate, aviation, IT-enabled services and financial services sectors.

HR heads of these sectors had drawn up plans to curtail workforce by 25 to 30 per cent and corporate entities wanted to start lay-offs in a phased manner, the ASSOCHAM analysis had claimed.

Infosys Co-Chairman Nandan Nilekhani, in his reaction, said slow growth could happen in the IT sector but he did not see any impending job cuts.

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