(From left) Former Union finance and external affairs minister Yashwant Sinha with Tata Steel vice-president (corporate services) Partha Sengupta and BJP legislator Sarayu Roy at the seminar at SNTI Auditorium. Picture by Bhola Prasad

Jamshedpur, Jan. 18: Jamshedpur Management Association in association with Jamshedpur Citizen Forum today organised a seminar on “Impact of global recession on Indian industry” at SNTI Auditorium.

Addressing the gathering, former finance and external affairs minister Yashwant Sinha called for “big bang approach” to deal with the global slump and said the country has not only has the ability to come out of the crisis but can save the world also.

Sinha said the Union government should understand the seriousness of problems and take some decision soon.

“The government should take some decision soon to bail out companies from this crisis. The US has promised a bailout package of $3 trillion while China is going to provide some US $0.50 trillion. In such situation, the bailout package of Rs 20,000 crore announced by the government would take us nowhere,” said Sinha.

Recommending some tips, Sinha said steps should be taken to bring down the present rate of interest. He called for government’s initiative for providing impetus to infrastructure development through special purpose vehicle (SPV).

“The crisis in the US started in 2007 and everyone was aware of it. However, their was no direct fall out of this crisis on us till the government’s measures of controlling inflation started pinching us,” he said.

According to Sinha, the Centre reacted in panic and only undertook monetary measures to controlling inflation, which he said was outcome of supply crisis in the market.

“The government should have taken measures for improving the supply crisis in the market instead of taking monetary measures. Due to these measures, the personal consumption has gone down and today everyone has lost confidence in the market,” added Sinha.

Among other speakers on the occasion was vice-president (corporate services) of Tata Steel Partha Sengupta. He said that everyone failed to predict economic meltdown and slowly and steadily the slump is having its effect on every sector of the economy. The sectors are trying to adopt a cost-cutting method to stay afloat during the crisis.