NEW DELHI: Cautioning the industry against short term gains Prime Minister Manmohan Singh Tuesday, asked it to help fight inflation by absorbing increase in input costs and give relief to consumers by passing duty cuts.

Addressing the captains on industry at the annual meeting of apex association CII Singh said: "Let me be upfront and say that the industry and trade must avoid the temptation of seeking short term gains and should cooperate with the government to ensure long term stability of the growth process,"

Singh's appeal to industry for cooperation comes hours before the annual monetary policy by Reserve Bank of India in the midst of inflation touching a three year high of over seven per cent right from the beginning of the current fiscal.

On its part the government has taken several steps to reverse the recent spurt in prices, Singh said and reminded the industry of its "societal obligation" in controlling inflation.

In a veiled warning against cartelisation, Singh said: "Leaders of industry, particularly in sectors characterised by significant market power in the hands of a few producers have a societal obligation to assist the government in moderating inflationary expectations."

"Industry must also pass on benefits of tax and duty cuts to consumers”, he added.