Nath assures secure jobs, hints at low interest rates
The government will take measures to check job losses in sectors taking a hit due to the global reduction in demand, commerce and industry minister Kamal Nath has said.
By ET Bureau |
NEW DELHI: The government will take measures to check job losses in sectors taking a hit due to the global reduction in demand, commerce and industry minister Kamal Nath has said. The minister also pointed out that sectors including steel and automobile were showing a recovery after slowing down in November and hinted at a further cut in interest rates. Speaking to reporters on Tuesday, Mr Nath said, ���The government is committed to ensure whatever stimulus is needed to see that there is no loss of jobs in some sectors which are taking a hit.���
On the issue of high costs of borrowing acting as a hurdle for the Indian industry, the minister said that the RBI was looking into the issue. ���My own view is that interest rates are very high, they need to be reduced,��� he said.
There have been massive job-cuts in the export sector over the last six months. A survey of about 402 export-oriented units carried out by the commerce department in the August-January 2008-09 period shows that almost two lakh workers were laid off in these units in the period. Based on the survey, the commerce department estimated a total 10 lakh job losses in the export sector till date.
The job losses are spread across the industry but are more pronounced in sectors like chemicals, gems & jewellery, textiles, handicrafts and sports goods.
The minister, however, added that there was a limit to the government intervention when the problems are arising from erosion of demand in the developed countries. ���The government can���t resolve the global economic problem,��� he said. A series of measures to help exporters is expected this month as the government���s last ditch effort to bail out the sector before the election code of conduct sets in.
The government may come up with a mini-free trade policy which will have new measures to boost exports and reduce transaction costs.
On the issue of high costs of borrowing acting as a hurdle for the Indian industry, the minister said that the RBI was looking into the issue. ���My own view is that interest rates are very high, they need to be reduced,��� he said.
There have been massive job-cuts in the export sector over the last six months. A survey of about 402 export-oriented units carried out by the commerce department in the August-January 2008-09 period shows that almost two lakh workers were laid off in these units in the period. Based on the survey, the commerce department estimated a total 10 lakh job losses in the export sector till date.
The job losses are spread across the industry but are more pronounced in sectors like chemicals, gems & jewellery, textiles, handicrafts and sports goods.
The minister, however, added that there was a limit to the government intervention when the problems are arising from erosion of demand in the developed countries. ���The government can���t resolve the global economic problem,��� he said. A series of measures to help exporters is expected this month as the government���s last ditch effort to bail out the sector before the election code of conduct sets in.
The government may come up with a mini-free trade policy which will have new measures to boost exports and reduce transaction costs.
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