PM assures industry of corruption-free environment

New Delhi (PTI) - Amid corporate honchos being
questioned in connection with 2G scam case by agencies, Prime
Minister of India Manmohan Singh Thursday assured a "nervous
industry" that the government is committed to creating a
corruption-free environment to ensure the industry moved ahead
without fear.
"I am aware of the nervousness in some sections of the
corporate sector arising out of some recent unfortunate
developments. We stand committed to ensuring that our industry
moves ahead with confidence and without fear or
apprehensions," Singh said addressing a meeting of the Council
on Industry and Trade.
The government is mulling all measures, administrative
and legislative, to tackle corruption and better transparency,
he said at the meeting which was attended by Ratan Tata, Rahul
Bajaj, Azim Premji, Sunil Bharti Mittal, Deepak Parekh, Swati
Piramal and Kumarmangalam Birla, among others.
India's premier investigating agency, the CBI, has
recently questioned various industry leaders in connection
with the 2G spectrum allocation scam. The Public Accounts
Committee of Parliament has also called them for questioning
on the issue.
In January this year, a group of prominent
personalities, including industrialists Azim Premji, Keshub
Mahindra and Deepak Parekh, had expressed concern over a
series of scams leading to "governance deficit". They had
asked the government to deal with burning issues like
corruption immediately.
In an 'open letter' addressed to the leaders, they had
said: "We are alarmed at the widespread governance deficit
almost in every sphere of national activity covering the
government, the business and the institutions. Widespread
discretionary decision-making have been routinely subjected to
extraneous influences.
Singh also assured the industry on continuation of
economic reforms. "Whenever I meet representatives from our
industry and businesses, the question I am most often asked is
whether economic reforms will continue.
"You should have no doubt on this score. The economic
reforms of the past have brought us advantageous and I can
assure you that we will continue traveling on this path. We
might do it gradually and in a manner which builds a consensus
for economic and social change", he said.
The Prime Minister said that government has taken
comprehensive steps to strengthen the intelligence and various
law implementing institutions to combat the menace of black
money and rein in corruption.
The government, Singh said, was committed to carry
forward the economic reforms programme.
"Tax reforms, especially the introduction of a Goods
and Services Tax, are a very important part of our agenda. So
also are financial sector reforms. We are also committed to
major reforms in education and skill development," he added.
The country, he said, also needed to develop long-term
debt markets and deepen corporate bond markets. "This in turn
calls for strong insurance and pension sub-sectors," he said.
As many of the reforms involve legislative changes,
Singh said, "we...will strive to build the political consensus
needed for these legislative actions to be completed".
On price rise, Singh said, "We need to deal
effectively with the consequences of rising oil, food and
commodity prices, political upheavals in many countries and
unprecedented natural disasters in various parts of the world.
"In recent months, inflation and food inflation in
particular, has been a problem. We want to deal with it in a
manner that the growth rhythm is not disturbed. I am hopeful
of seeing lower levels of inflation in the coming months," the
Prime Minister said.
Referring to moderation in manufacturing growth, Singh
said, it was an area of concern and the government was
working on a comprehensive policy to improve its performance.
The government, he also assured the industry, would
protect the interest of the domestic sectors at the
negotiations at the World Trade Organisaton (WTO).
"We are ensuring that our interests are protected in
negotiations at the WTO...We are committed to ensuring
compliance of environment laws and at the same time reviewing
the regulatory institutions and implementing frameworks to
ensure that they are rule based, and aligned to the legitimate
needs and aspirations of local populations and of businesses
alike," Singh added.
Meanwhile, the Council considered the reports of the
five sub-committees on issues like financial inclusion, tribal
area development, public private partnership (PPP) in research
and development, agriculture production and skill development.
The sub-committee on financial inclusion has suggested
all subsidies should be paid through no frills account.