Tag: India inc

  • You reap what you sow: Opposition leaders’ dig at India Inc over criticism by Piyush Goyal

    By PTI

    NEW DELHI: Opposition leaders on Saturday latched on to a media report on Commerce Minister Piyush Goyal’s criticism of business practices of Indian industry to attack the government with some also taking a swipe at India Inc for backing the ruling dispensation, saying “you reap what you sow”.

    Speaking at a CII plenary session, Goyal reportedly asserted that the business practices of Indian industry went against national interests.

    According to a report in the Hindu, Goyal repeatedly singled out the Tata Group in his comments and said, “Kya aapke jaisi company, ek do aapne shaayad koi videshi company kharid li… Uska importance zyaada ho gaya, desh hith kam ho gaya? (A company like yours, maybe you bought one or two foreign companies, now their importance is greater than national interest)?” However, sources close to the minister said his comments were represented out of context.

    “The thrust of his interaction was on national interest. The minister’s heart-felt appeal must be viewed in its entirety and not singled out for slander,” a source close to him said.

    Several Opposition leaders tagged the media report and attacked the government for the criticism of India Inc.

    Senior Congress leader Jairam Ramesh said he was flabbergasted at Goyal’s “unprovoked attacks” on Indian industry.

    “First, he ensured Rajya Sabha did not function at all, and now this bizarre tirade! He couldn’t be speaking without official sanction, could he?” Ramesh said in a tweet.

    Congress spokesperson Jaiveer Shergill claimed that by making this statement, Goyal has mocked Prime Minister Narendra Modi’s slogan “Ease of doing business in India”.

    “BJP Ministers confusing ‘Govt andhbhakti’ with ‘deshbhakti’ while pretending to be franchise holders of Nationalism!” Shergill tweeted.

    On one hand the BJP government has given a contract to build the new Parliament of India to the Tatas and on the other hand BJP minister Goyal, according to media reports, is calling them anti-national, he said, adding that “BJP doublespeak knows no limits”.

    Some leaders also took a swipe at India Inc for backing the BJP government in recent years.

    Senior Congress leader Manish Tewari said, “You reap what you sow INDIA INC.”

    “Bombay Club 1.0 created NDA/BJP Govt between 2012-2014. Threw collective weight behind one individual and not even one party. And now @PiyushGoyal terms them anti-national,” the former Union minister tweeted.

    Taking to Twitter, Aam Aadmi Party leader Raghav Chadha said, “Dear Corporate India, Whatsoever a man soweth, that shall he also reap. Best wishes.”

    Slamming the remarks, Shiv Sena Rajya Sabha MP Priyanka Chaturvedi said the kind of language used against industry captains and calling their work against the nation’s interest is shameful to the core.

    “CII should demand an apology instead of helping him by pulling down the video. Stand up to bullying!” she said.

    All India Majlis-e-Ittehad-ul-Muslimeen chief Asaduddin Owaisi also took a dig at the government over Goyal’s comments, saying Prime Minister Modi wants to take them into confidence but the minister wants to hold them accountable.

    How will this work, he asked.

    Trinamool Congress leader Mahua Moitra took a dig at Goyal over what she said was an “unhinged rant” at the CII meeting, saying the “pressure of working in an underperforming one man show must really be getting to them”.

    Anil Swarup, a former Secretary of the government of India, said he had doubted it but Goyal did make the comments and asserted that what is appalling is that no one from the industry protested.

    “The industry acted worse than civil servants (at least some protested) when they were pilloried & called ‘Babu’ in Parliament,” he said.

    Reacting to the comments, former IPS officer M Nageswara Rao said he was happy that Piyush Goyal spoke from his heart.

    “In less than a decade India’s Rich became Super-Rich, while Non-Rich struggle to make both ends meet. All because of Central Govt’s extraordinary focus on EASE OF DOING BUSINESS, rather than on EASE OF LIVING,” he tweeted.

  • ‘Demand shock’ to add to India Inc’s distress, says RBI

    Express News Service
    NEW DELHI: The second Covid wave could push businesses into further distress with a ‘demand shock’ as people — and companies — are holding on to their purses due to falling incomes, job losses, and an overall weak consumer sentiment, according to the Reserve Bank of India. “High frequency indicators suggest that the biggest toll of the second wave is in terms of a demand shock – loss of mobility, discretionary spending and employment, besides inventory accumulation, while the aggregate supply is less impacted,” RBI said in its monthly bulletin for May, released on Monday. 

    Painting even a bleaker picture for the economy, RBI said its recent projections were “extremely tentative” given the disproportionate base effects. It added that it might have to revise its GDP growth forecast of 26.2% for the first quarter “made before the full fury of the resurgence”. Preliminary data on petrol and diesel sales point to a decline in fuel demand in April, due to mobility restrictions. Diesel sales contracted 1.7% on a month-on-month basis, while petrol sales slipped 6.3% in April. Electricity generation stagnated sequentially but rose 8% compared with April 2020. 

    Pointing to such growth figures, when compared annually, RBI said the impact of the second Covid wave on industrial activity may be less severe than the first. It may, however, be noted that industrial production surged out of a two-month contraction on the back of a favourable base effect.E-way bills  —  an  indicator  of  domestic  trade  —  recorded a 17.5% month-on-month contraction in April. “This could be pointing to a moderation in GST collections in the coming months,” RBI observed. Similarly, most of the original equipment manufacturers of passenger vehicles reported a monthly fall in April, reflecting subdued demand.If infections don’t ebb and demand weakens further, it could worsen price instability, the central bank warned. 

    U-shaped impactEach tip of the ‘U’ represents sectors that are weathering the storm – agri at one end and IT on the other On the slopes are automated manufacturing and services that can be delivered remotely In the well of the ‘U’ are the most vulnerable groups that have to risk exposure such as doctors, healthcare workers, law and order personnel, civic staff, small businesses, etc