Warning of “social unrest” if incomes do not rise to bridge growing inequality, Singh came up with a 10-point charter for India Inc to ensure that the poor benefit from the economic boom. Its key elements echoed his earlier remarks — affirmative action, workers’ benefits, honesty, transparency in business and environment-friendly investments.

But the Prime Minister surprised many in the audience when he included in the “charter,” the need to avoid high salaries for executives, discourage conspicuous consumption, even keep profits “within the limits of decency” and shun the “wasteful lifestyles of the Western world.”

“In a country with extreme poverty, industry needs to be moderate in the emolument levels it adopts,” Singh said. “Rising income and wealth inequalities, if not matched by a corresponding rise of incomes across the nation, can lead to social unrest. The electronic media carries the lifestyles of the rich and famous into every village and slum. Media often highlights the vulgar display of their wealth. An area of great concern is the level of ostentatious expenditure on weddings and other family events. Such vulgarity insults the poverty of the less privileged, it is socially wasteful and it plants seeds of resentment in the minds of the have-nots.”

Calling for a broadening of corporate social responsibility, Singh said it should not be defined by “tax planning strategies” alone. “Rather, it should be defined within the framework of a corporate philosophy which factors the needs of the community and the regions in which the corporate entity functions.”

The PM said the industry must be more proactive in recruiting workers from underprivileged backgrounds and should guard against attempts to subvert competition. Workers must feel they are cared for at work otherwise India can “never evolve a national consensus in favour of more flexible labour laws aimed at ensuring that our firms remain globally competitive”, he said.

Singh said he felt the representation companies give to people belonging to Scheduled Castes, Scheduled Tribes and other Backward Classes, minorities and women in their workforce and staff must increase. “I look forward to credible results at an early date”, he said, asking CII members to implement the recommendations of this report in a time-bound manner.

Referring to the recent spike in food prices, Singh said “operation of cartels by groups of companies” was keeping prices high, and this practice must end. “Cartels are a crime and go against the grain of an open economy,” he said.

“It is unacceptable to obstruct the forces of competition from having fair play. It is even more distressing in a country where the poor are severely affected by rising commodity prices.”

Earlier this month, the PM had asked industry leaders if economic policies aimed at protecting home businesses were fostering “crony capitalism”.

He said while the UPA government would continue to create an environment that is friendly for the growth of manufacturing industry, leaders must also facilitate employment creation in their industries. This requires expansion of economic activity, investment in human capabilities and the pursuit of socially, politically, environmentally and financially sustainable growth, he said.

Edited Text of PM’s speech