Home / Knowledge / News / Textiles / FICCI President rules out large scale lay-offs

FICCI President rules out large scale lay-offs

31
Oct '08
Mr. Rajeev Chandrasekhar, MP and President, FICCI has ruled out any immediate threat of large-scale layoffs in the industry. FICCI is of the firm belief that the fundamentals of the Indian economy are strong and that we will be able to avoid any adverse development on the investment and employment front if concerns of the real economy are taken care of.

Reacting to the emerging situation, Mr. Rajeev Chandrasekhar, FICCI observed “I have been consistent over the last few months in saying that the Indian Economy is facing some serious challenges as a result of the many quarters of tight monetary policy and the more recent International Banking crisis! However we do not believe any immediate threats exist of the form that Assocham is alluding to.

We should not panic. This is a time for cool heads and a well-planned strategy that has as its twin objectives a) protecting our economy from any collateral damage from this international crisis and b) putting growth back as the primary focus of government policy.”

Given the existing situation, FICCI feels that there is a clear danger of fresh investments, incremental employment and additional exports getting affected in the months ahead. In fact signs of such a thing happening are already visible. FICCI's Business Confidence Surveys and Export Surveys have shown that Indian industry and the exporting community are apprehensive about their near term performance. However, while this situation certainly demands attention there is no need to panic.

Alluding to the recent steps taken by the monetary authority to enhance availability of liquidity in the system, Mr. Chandrasekhar said that these are clearly inadequate and what is needed is a comprehensive plan with simultaneous use of all measures available.

On sustaining the growth momentum of the economy and for generating additional employment, Mr. Chandrasekhar observed “We believe that a number of additional steps and policy initiatives are required to provide a systematic and steady path to putting the economy back on the growth track.

A steady, calm and complete approach is what is required at this very critical stage of expansion of our economy, which as you realize is being driven primarily by private investments. These private projects are all at a critical stage of investments / expansion and any mis-steps at this stage could prove extremely disruptive to the real economy in the future.”

On the issue of employment, FICCI observed that laying off people in the current situation is not an option that companies have. This is because the labour laws in the country prevent any sudden compression in the workforce. Further, as far as management and officer level people are concerned, for many companies these are assets in which huge investments have been made over time. As a result laying off people would adversely affect the companies.

FICCI strongly mentioned that in the present circumstances the critical question is not how many jobs would be lost, but rather how the growth momentum could be maintained to generate gainful employment for the additional 12 million people who would be joining the workforce annually. Feedback gathered by FICCI shows that it is fresh hiring that has gone into a slowdown mode and therefore steps must be taken to revive growth and higher growth will translate into higher employment.







FICCI


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 29th Oct 2020

Bangladesh restored 40% of cancelled RMG orders: minister

Bangladesh foreign minister AK Abdul Momen recently said the...

Pic: Shutterstock

Textiles | On 29th Oct 2020

Uzbek trade body, Indonesian textile firm mull cooperation

Representatives of the Uzbekistan Textile and Garment Industry...

Pic: Shutterstock

Textiles | On 29th Oct 2020

PRC unofficially boycotts Australian cotton, imports halt

All cotton exports by Australia to China have reportedly stopped...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Textile institutes need to change their curriculum

C. Dhandayuthapani, Mag Solvics Pvt. Ltd

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Headhonchos, Textiles & allied industry

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Saad Khaled Bari,

Saad Khaled Bari

Benetex Industries is a public ltd company established in year 1992 to...

Hardik Sanghvi,

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Nina Smith,

Nina Smith

GoodWeave International, a nonprofit working to end child, forced and...

Ashok Desai, Bombay Textile Research Association

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, a global association of the nonwoven fabrics industry, has been...

Giulio Cesareo, Directa Plus

Giulio Cesareo
Directa Plus

UK-based Directa Plus is one of the largest producers and suppliers...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

Ruma Devi is a jet-setting promoter of artisans who has empowered...

Joe Ikareth, Joe Ikareth

Joe Ikareth
Joe Ikareth

<b>Joe Ikareth</b> has a rock-solid fashion and textiles background, which ...

Ritu Kumar, Label Ritu Kumar

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


October 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search