MUMBAI, Nov 19: Corporate India has hardly anything to cheer for with the Rupee on the downhill path, credit off-take refusing to look up despite successive reduction in interest rates and the country likely to be heading for a mid-term poll. The current political impasse at New Delhi is an untimely disease which needs to be cured at the earliest, no matter how bitter the pills may be, corporate leaders feels.As former ACC chairman Nani Palkhiwala says, ``The country appears to be doomed but there seems to be no option other than a general election.'' According to him the adverse economic conditions on domestic and international fronts are likely to prevail for several years, but elections can not be postponed under the prevailing circumstances.One of the main concern in the corporate and economic circles is the weakening rupee and a glim outlook on the oil pool account which are inter-connected.While on the rupee front the Reserve Bank of India (RBI) intervention is yet to show results, the international oil prices are going up at a steady pace in view of the continuing face-off between the USA and Iraq. The fear of yet another Gulf crisis began to show up in international market from last week. The Dubai crude used in most Indian refinery went up from US $ 18.69 per barrel last week to $ 19.08 per barrel. Similarly, the benchmark Brent has gone up from US $ 19.9 to $ 20.10 per barrel.As Rahul Bajaj, chairman of the Bajaj group, puts it: The Government, in any case had ceased to be effective since the last two months. Now if the Congress withdraws support to push the country to another general elections, there would be a caretaker Government which again would not take any major policy decision.However, he also expresses doubts about the efficiency of the present political arrangement. The 13-party Government is unlikely to be effective due to internal contradictions and differences. Under the circumstances fresh elections are desirable no matter how expensive the whole exercise turns out to be.A top executive, who wishes to be anonymous, shares Bajaj's views saying that when damages are inevitable, the only question is how to minimise them. ``Just think about the pending Bills,'' said Ram Gandhi, president of the Indian Merchant Chamber. The Money Laundering Bill, the Foreign Exchange Management Bill, the Corporate Bill and many more vital pieces of policy initiatives are likely to be put on the backburner.RBI governor C Rangarajan confirms the fundamental strength of the economy but says there will be a slow down if compared with over 6.5 per cent growth rate achieved for the last few financial years.
