Greed ain't good; FM in chorus with PM
PM's dressing down to the captains of India Inc may set the tone for policy changes for biz and industry.
By TNN |
NEW DELHI: Competition proposes, PM disposes. Say no to big salary cheques to promoters and senior executives and spare a thought for the have-nots. Say no to exclusive wedding and birthday bashes and embrace inclusive growth.
Shun cartelisation which leads to high prices, and keep the interests of aam admi at the core of business philosophy. Yes, three cheers to India Inc, but only if companies increase representation for the minorities and weaker sections of society.
That’s Prime Minister Manmohan Singh’s strong, no-holds-barred message to India Inc after three years in office as the head of the ruling UPA coalition at the Centre. Its one thing for the political establishment to occasionally step up the aam admi rhetoric, on the back of which the UPA coalition rode to power in 2004, but quite another for the proponents of free markets to sing along with the Prime Minister.
That’s precisely what happened at the CII conference on ‘inclusive growth’ where Prime Minister Manmohan Singh cracked the metaphorical whip on India Inc. “Profit maximisation must be within the bounds of decency and greed,” Manmohan Singh asserted.
“The operation of cartels by groups of companies to keep prices high must end. It is unacceptable to obstruct the forces of competition from having a freer play. It is even more distressing in a country where the poor are severely affected by rising commodity prices,” Mr Singh stressed. It's nothing but Maya(wati), did you say? But the PM's dressing down to the captains of India Inc may set the tone for policy changes for business and industry in the coming years.
Shun cartelisation which leads to high prices, and keep the interests of aam admi at the core of business philosophy. Yes, three cheers to India Inc, but only if companies increase representation for the minorities and weaker sections of society.
That’s Prime Minister Manmohan Singh’s strong, no-holds-barred message to India Inc after three years in office as the head of the ruling UPA coalition at the Centre. Its one thing for the political establishment to occasionally step up the aam admi rhetoric, on the back of which the UPA coalition rode to power in 2004, but quite another for the proponents of free markets to sing along with the Prime Minister.
That’s precisely what happened at the CII conference on ‘inclusive growth’ where Prime Minister Manmohan Singh cracked the metaphorical whip on India Inc. “Profit maximisation must be within the bounds of decency and greed,” Manmohan Singh asserted.
“The operation of cartels by groups of companies to keep prices high must end. It is unacceptable to obstruct the forces of competition from having a freer play. It is even more distressing in a country where the poor are severely affected by rising commodity prices,” Mr Singh stressed. It's nothing but Maya(wati), did you say? But the PM's dressing down to the captains of India Inc may set the tone for policy changes for business and industry in the coming years.
Dream merchant P Chidambaram—who gave this country the Dream Budget in 1997—kept chorus with the original Sardar of reforms.
Speaking at the same forum later, Finance Minister P Chidambaram blamed certain states and administration for poor delivery of social welfare schemes. "Incapacity of the states and administration cannot be a ground to blame growth... if high growth is not inclusive, low growth will be more non-inclusive," he said, admitting to leakage of funds in central-sponsored schemes.
"Rising income and wealth inequalities, if not matched by a corresponding rise of incomes across the nation, can lead to social unrest... We cannot afford the wasteful lifestyles of the western world," said the Prime Minister, reminding the industry that India, with over one billion people, still faces the problem of scarce natural resources on per capita basis.
He advised corporate houses on how far they could go to create wealth without profiteering. “If a liberalised economy is to succeed, we must give full play to competitive forces and the private sector should show some self-restraint in this regard,” Mr Singh said.
Speaking at the same forum later, Finance Minister P Chidambaram blamed certain states and administration for poor delivery of social welfare schemes. "Incapacity of the states and administration cannot be a ground to blame growth... if high growth is not inclusive, low growth will be more non-inclusive," he said, admitting to leakage of funds in central-sponsored schemes.
"Rising income and wealth inequalities, if not matched by a corresponding rise of incomes across the nation, can lead to social unrest... We cannot afford the wasteful lifestyles of the western world," said the Prime Minister, reminding the industry that India, with over one billion people, still faces the problem of scarce natural resources on per capita basis.
He advised corporate houses on how far they could go to create wealth without profiteering. “If a liberalised economy is to succeed, we must give full play to competitive forces and the private sector should show some self-restraint in this regard,” Mr Singh said.
The Prime Minister also told the industry to resist excessive remuneration and conspicuous consumption. "In a country with extreme poverty, the industry needs to be moderate in the emoluments. Income inequalities can create resentment in the minds of the have-nots and can lead to social unrest.”
Yes, Prime Minister, says India Inc. Without referring to the PM's speech, Ratan Tata said, “We need to dispel the perception that big business is bad and selfish. There is great poverty and disparity around us. We need to be moderate in how we live and how we conduct ourselves.”
Godrej & Boyce CMD Jamshed Godrej was perhaps not entirely convinced but hummed along, “How does one define 'excessive' remuneration? And in these times of globalisation, who do we compare ourselves with? Despite these questions, I think what the PM has rightly suggested is that the industry should follow moderation in keeping with the ethos of the times.”
Adds Ranbaxy's CEO & MD Malvinder Mohan Singh, "The industry needs to maintain a balance while remaining competitive. To retain employees, we have to offer an attractive package which includes not just compensation but also personal development and growth opportunities.”
Yes, India Inc is doing well, but is it doing enough for the weaker sections of the society? “I am aware that some of our companies are doing creditable work. I compliment them. But we need more such inspiring examples... The representation companies give to SCs, STs, OBCs, minorities and women in their workforce and staff must increase,” Singh said.
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Given that India ranks really low on most transparency indices, the PM minced no words, “Corruption need not be the grease that oils the wheels of progress. There are many successful companies today that have refused to yield to this temptation,” Mr Singh told captains of the industry. He urged businessmen who enter politics to erect a “Chinese Wall” between business and politics.
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