The Prime Minister said the government had anticipated some slowdown in the economy and that this was reflected in the 2008-09 Budget wherein provisions were made with regard to the revenue deficit, social development programmes like the National Rural Employment Guarantee scheme and infrastructure projects.

The industry must have the confidence as the government knows how to tackle such situations, Singh said and cited the "more severe" economic crisis of 1991 which was surmounted under his Finance Ministership.

"We have the will and resources," he said while calling upon the industry to work with the government to meet the situation.

Observing that the developing countries were the "worst victims" of a crisis that was not of their making, he said the developed countries have the responsibility to ensure that the burden "does not fall disproportionately" on the shoulders of the weak and the Millennium Development Goals should not suffer.

Referring to the recent G-20 meeting in Washington on the economic crisis which he attended, Singh expressed satisfaction at its outcome and said "hopefully a beginning has been made" to correct the international financial architecture and tackle the problem.

Noting that global problems required global solutions, he said there was a need for a global safety net.

The Prime Minister emphasised that the developed countries should avoid recourse to "protectionism", saying it is not a "remedy" to the problems.

Singh said when US President George W Bush invited him for the G-20 Summit, he was somewhat "pessimistic" about the outcome.

... contd.