New Delhi, Jul 15: India Inc today acknowledged that economic reforms were lagging and growth had slowed down but said solutions to the situation should be found within and not as prescribed by outsiders.
Reacting to US President Barack Obama's assertion that the government must carry out “difficult” economic reforms, India Inc said India remains a strong investment destination with strong long-term growth prospects.
Obama in an interview to PTI in Washington said American firms say “ it is still too hard to invest in India.
In too many sectors, such as retail, India limits or prohibits the foreign investment that is necessary to create jobs in both our countries, and which is necessary for India to continue to grow”.
Obama said, “there appears to be a growing consensus in India that the time may be right for another wave of economic reforms to make India more competitive in the global economy.”
Acknowledging that the nation lagged in reforms in sectors like retail, aviation, defence and insurance, India Inc said Obama or any other person cannot be “dictating Indian government or Indian policy makers”.
“US has its own problem and India has its own. Our government will take decision as per our own compulsions and requirements. However, we do need reforms but Obama or any other person cannot be dictating Indian govt or Indian policy makers,” industry chamber Assocham Secretary General D S Rawat said.
US, he said, also had lot of “limitations” like the recent restrictions imposed on BPOs. “But it is there decision. Similarly, decisions taken our policy makers should not be questioned because our economy is till doing much better than most of the developed countries,” he said.
CII Director General Chandrajit Banerjee said, “India was resilient and was still growing at 6 per cent during the time of global economic uncertainties.”
Banerjee said, “However, there are some issues which need to be addressed.”
“We still need reforms in sectors like retail, aviation, defence and insurance. Our understanding is that we should be seeing reforms over a period of time,” he added. FICCI Secretary General Rajiv Kumar said India's long-term growth remains strong and intact.
“There are number of positive structural features that will ensure that India continues to attract investments and maintain the rate of GDP growth,” he said. “However, it is evident that some significant reform measures have to be urgently. We are convinced that investors sentiment will become positive if these measures are implemented,” Kumar said.
“In recent pronouncements by the government have given a degree of reassurances in this regard,” he added.
CII said investor sentiments towards India was quite strong but “certain developments” like retrospective amendments in IT Act and General Anti-Avoidance Rules (GAAR) have affected the mood. “However, we know that the government would adequately address these issues”, Banerjee said.
Assocham's Rawat also said the government was fully alive of the need to allay investor concerns and expressed confidence that the government “will take desired actions.”
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