The Confederation of Indian Industry said on Friday that the Severe Acute Respiratory Syndrome may bring in uncertainty in the global as well as Indian economy.

Outgoing CII president Ashok Soota said SARS -- and not the Iraq War -- is a matter of real concern.

"SARS may prove to be a major hindrance to the growth of the economy. The issue must be handled immediately," he said.

The outgoing president also said the CII and the government will work hand in hand on various projects.

"We need to strike a balance and contradictions and appeasement are part of the game," he said referring to CII's recent spat and appeasement show with Gujarat chief minister Narendra Modi.

Anand Mahindra, vice-president, CII, will take over as the confederation's next president at the annual general meeting to be held at the end of this month.

Meanwhile, CII, along with the International Enterprise Singapore, will soon launch an 'India Centre', which would help mid-sized Indian companies to use the infrastructure facilities of Singapore, primarily in the field of designing, IT and biotech, besides encouraging freer movement of people.

This apart, Singapore will also be used as a base for disaster recovery.