India Inc worried over reforms stalling post poll reversals

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According to the Bangalore Chamber of Industry and Commerce (BCIC), with the sudden reversal in election results which came out yesterday, India Inc is left wondering if the UPA-II Government will be able to push through the much required second generation reforms in the ensuing Union Budget to sustain economic growth and instill confidence to investors and propel industrial growth which has taken a back seat for the past few months.

In his reactions on the electoral verdict, Vinod Nowal, President, BCIC, observed, “With the severe reversal that the Congress has suffered in the elections and the impending compulsions and arm twisting expected from the UPA allies to hold on reforms process, especially in areas like power, mining, FDI in Retail, Civil Aviation, infrastructure, GST, DTC, and bringing the parallel economy under the tax net, Indian inc is hoping that the UPA government will make good its election reversals by announcing an exceptionally pro-people, pro-reforms budget which in turn will propel the requisite growth prospects and the business confidence not only among domestic but overseas investors as well.”

Lakshminarayan, Senior Vice President, BCIC, observed: “Our GDP growth has already touched a low of 6.1 per cent in the third quarter this fiscal which is indeed a great cause for concern to all of us. We cannot further slowdown the economy as we need to generate employment and increase industrial production. Since there has been a general perception that all major political parties are in favour of development and growth as the results indicated in Punjab, the Finance Minister will come out with a reform-oriented budget.”

H V Harish, Vice President, BCIC, feels it is the right moment for the Finance Minister to unleash reforms and show their commitment towards bringing back confidence of the Industry and investors, and also ensure the necessary flow of funds to the corporate sector at moderate interest rates.