PM attack makes industry beat retreat

A belligerent Manmohan Singh has 'forced' India Inc to beat a hasty retreat on 'paralysis' bytes.

Heads of the leading business chambers8211; Ficci and Assocham today said the industry has 8220;equal responsibility8221; along with the government to pull the economy out of slowdown without always 8220;cribbing about policy paralysis.8221;

Asked to comment on Prime Minister Manmohan Singh expressing disappointment over the negative comments from industry about the government,Ficci President Harsh Mariwala said,8221;We need to take equal responsibility8230;we need to work together in 2012. We cannot go on blaming each other.8221;

Assocham President Dilip Modi struck a similar conciliatory note. 8220;He Prime Minister has his own compulsions8230;8221;. Modi said that instead of 8220;flagging the issue and cribbing about,8221; the industry should tweak and explore the business possibilities which are still existing.

In the meeting of the PM8217;s Council of Trade and Industry on December 22,Singh had expressed disappointment over some of the recent statements from corporate honchos about policy paralysis in the government.

8220;8230;I must confess that it is a little disappointing to sometimes hear negative comments emanating from our business leadership or be told that government8217;s policies are causing slowdown and pessimism. In the industrial sector,such comments have added to uncertainty8230;,8221; Singh had said.

Mariwala said the opposition must also work in alliance with the government to push through the reforms in the coming year. 8220;Industry,government and opposition have to be in alliance,8221; he said.

A number of reforms like opening the pension sector to foreign investment,hiking FDI cap in insurance from 26 per cent to 49 per cent and introduction of Goods and Services Tax have been delayed for lack of political consensus not only between government and opposition but also among UPA allies.

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India8217;s economic growth rate slipped to a nine-quarter low of 6.9 per cent in the July-September quarter of this fiscal. It was 8.4 per cent in the corresponding period last year.

The Index of Industrial Production IIP growth turned negative by 5.1 per cent in October.

A group of industry leaders,including Wipro head Azim Premji and HDFC chief Deepak Parekh have been airing concerns over industrial slowdown and delays in policy reforms.

When asked about possibilities of reforms in new year,Assocham President said that ethical business standards and corruption-free India is the need of the hour.

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8220;There has been more of bad than good news this year. Let8217;s not be negative. The political system should understand there is a great opportunity and we should not miss it. Reforms will lead to more desirable actions. We should focus on what we can do to drive growth,8221; Modi said.

Mariwala said that reforms would depend upon three factors8211;global scenario,inflation and performance of the agricultural sector.