New Delhi, Apr 29 : Prime Minister Dr. Manmohan Singh today called upon the trade and industry to take steps for absorbing the rise in input costs to maintain the price line.

Addressing the Annual General Body meeting of the Confederation of Indian Industries (CII) here, Dr. Singh said that the industry must also pass on the benefits of tax and duty cuts to consumers.

“The prospects for domestic growth remain good if we can ensure price stability that will help sustain the growth momentum,” he added.

Dr. Singh reiterated that the Government is fully alive to the challenge and has taken several steps to reverse the recent spurt in prices. “I am confident that we will be able to moderate the price rise,” he added.

However he added, we cannot ignore the fact that there are external factors contributing to inflation over which we do not have much control.

Referring to the sharp rise in world oil prices, Dr. Singh further said that this has the effect of redistributing incomes away from oil importing developing countries to oil exporting countries.

“ What is disturbing is the fact that while world oil demand rose by just 1 per cent per annum over the past two years, crude oil prices shot up by over 90 per cent in US dollar terms and over 40 per cent in terms of Euros. This sharp rise in world oil prices has the effect of redistributing incomes away from oil importing developing countries to oil exporting countries.”

Expressing his deep dismay on this, Dr. Singh said “Global response to this third energy crisis has fallen short of our expectations and compares poorly with the response to the first and second oil crisis”.

While the Annual meeting is addressing the challenge of “building people”, Dr. Singh emphasized that there is no denying that to make better use of the opportunities and to deal more effectively with the challenges we have to not only sustain the growth process at home, but also make it more socially and regionally inclusive.

“Investment in the capabilities of our people, particularly, the young people is the most enduring way to make the growth process more inclusive,” he added.

The Prime Minister also called upon the industry to make commitment for sustained growth of productivity and innovation as an integral part of the philosophy of corporate management. “It will help our firms, it will help the Indian consumer,” he said. (ANI)