New Delhi: India is unlikely to see any large-scale job cuts as it has a strong domestic market to consume what it produces, Cabinet Secretary K M Chandrasekhar said.
“Most of our productions are based on domestic demand. As long as domestic demand remains reasonably strong, I don’t think there would be any large-scale job cuts in India,” he said.
Like many other countries, India does not import in a big way, he said, adding that many steps have been taken by the government and Reserve Bank of India to ease the crisis.
Prime Minister Manmohan Singh too had earlier this month asked the industry not to cut jobs as a knee-jerk reaction to the global financial crisis.
“Enough liquidity has been pumped into the market. I think, we should be able to contain the situation more or less,” Chandrasekhar said.
When asked whether the government will intervene if any companies resort to large-scale job cuts, Chandrasekhar said, “In the case of Jet Airways, the company was told to take back all the sacked employees and they responded positively.”
Last month, Jet Airways hit by the crisis, announced the termination of services of around 1,900 employees mostly cabin crew. However, it reinstated all the sacked staff following government intervention.
The economic crisis has prompted many companies in other countries to lay off their employees, while fears still looms large over Indian firms.
On India’s confidence-level in handling crisis situation, Chandrasekhar said, “Initially, industry lacked confidence a bit, but they have now regained”.
Quoting a report that said Indian industries’ confidence level is the second highest, next to Norway, he said, “The country’s industry was considerably resilient and has more confidence to face any financial crisis.”