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CII says nucler tests by Pakistan were expected
In a cautious reaction the Confederation of Indian Industry stated the nuclear tests by Pakistan was expected and, therefore, it was no surprise. It said the tests carried out by India flowed out of the serious concerns about the regional security environment. The tests carried out by Pakistan only reaffirm these security concerns of India. The chamber strongly urged that there must be renewed focus on building a strong Indian economy and a globally competitive economic nation. D K Ghosh, Director, Corporate Planning and Communication, Siemens Public Communication Networks Ltd, said the nuclear arms race in the subcontinent would result in a major diversion of funds from infrastructure areas like telecom to the defence budget. The economic sanctions imposed by western countries are loaded against India, though their impact is still to be gauged fully, he said, adding that Indian telecom industry would definitely be affected by the developments. Sunder Vachani, chairman of the electronics and computer software export promotion council (ESC), called for stepping up diplomatic efforts to blunt the impact of economic sanctions. The markets will no doubt suffer a setback he said adding that neither India nor Pakistan could afford a war in the present circumstances. Both countries should work to spruce up their economies and improve the standard of living instead of escalating the nuclear arms race in the subcontinent. Airing somewhat similar views, Eicher Group Chairman Subodh Bhargava said now the government will have to take some harsh steps in the forthcoming Budget, which might not necessarily translate to higher taxes. It would instead mean widening the tax base, he added. The climate, he said, is right for the political leadership to inflict harsh and hard decisions.