Tourism, IT hit by global economic slowdown: Kerala FM

Kochi, Nov 3 (UNI) Kerala Finance Minister Thomas Issac today said the state was feeling the pinch of the global economic meltdown with the tourism and IT sectors being hit.

Addressing a conference on 'Global Financial Crisis and Indian Economy' here, Mr Issac said, '' due to the global economic downturn, there has been a decrease in the number of inbound tourists and the IT sector was not able to get enough contracts from abroad''.

Speaking on the reports of employee retrenchment in certain IT companies in the state, he said, '' the labour laws were applicable to the Technoparks in the state and the government would ensure that they are adhered to''.

He said global economic slowdown had decreased the confidence of the investor and eventually had created more unemployment.

The Central and state governments should invest more in infrastructure to tide over the financial problem in the country, he said.

'' The Centre should give more money to the state governments to invest in infrastructure development and the public sector undertakings (PSUs) should take more debts to fund their various pending projects,'' Mr Issac added.

The RBI's move to cut CRR, SLR and Repo Rate would infuse more money into the economy. But it would not address the root problem facing by the economy, he opined.

The Centre was interested in sorting out the problem of fluctuations in the stock market, he said, adding that its move to lift ban on FII investment was an effort to increase the 'sensex points' through foreign investors.

UNI MA SBA AS2101