Policy decision delays hitting investor sentiment: Raman Singh

He told a meeting of National Development Council (NDC) here, chaired by Prime Minister Manmohan Singh, that the 12th plan has been made on "patronage model" and impinges on the autonomy of the states by making them "mere implementing agencies of centrally sponsored schemes" due to string of conditionalities attached to them.

"Index of industrial production during the first six months of the plan has remained virtually stagnant with manufacturing sector registering negative growth. Similarly, growth in infrastructure sector, which is vital for stimulating demand in other sectors, has been far from satisfactory.

"Investments in power sector are falling as coal linkage and pricing issues are yet to be satisfactorily resolved. Mining activities have come to a standstill in the absence of a streamlined regulatory and environmental framework. Road projects are confronting multiple issues that include land acquisition problems as well as financing constraints which require creative solutions," Singh said.

The BJP Chief Minister said although, the plan document talks about reversing the trend through strong corrective action, the macro-economic indicators have not shown any sign of recovery and "this is likely to affect the GDP growth rate".

He said the growth targets have to be seen in the backdrop of current economic slowdown.

"The key bottlenecks are uncertainty in sectoral policies, inordinate delay in decision making, and complicated and time-consuming procedure for statutory clearances," he said and cited some critical factors impeding the economy's growth and adversely affecting investor sentiment. (MORE)