'No trust deficit between govt and industry'

Days after Chief Economic Advisor Kaushik Basu said there was a trust deficit between the government and India Inc, industry leaders have taken a soft stand on the issue.

Earlier, the industry had been quite critical of the government, even criticising the latter for “policy paralysis”.

“CII (Confederation of Indian Industry) believes there is no trust deficit between the government and industry and respects the divergent views expressed in a multi-party democracy. It also requests all political parties to strive towards a consensus that would be in the best interest of the Indian economy and its people,” CII President Adi Godrej told Business Standard.

 

Federation of Indian Chambers of Commerce and Industry President R V Kanoria also said there was no question of a trust deficit between the government and industry.

Associated Chambers of Commerce and Industry of India President Rajkumar Dhoot, however, said, “Some recent developments had created a situation of what you may call a trust deficit…However, this is only the surface. There has been some inertia in government functioning.”

Recently, Basu had said, “There is an element of a trust problem between industry and government.” He had also said the government was trying hard to bridge the gap.

Though the industry continued to push for reforms, its stand has somewhat softened after Prime Minister Manmohan Singh took charge of the finance ministry and assured further consultations on the General Anti-Avoidance Rules.

Today, industry leaders also raised concern over the implementation of crucial infrastructure projects and delay in expediting important policy decisions. When asked about the areas of concern, the chamber leaders cited land acquisition, environmental clearance and coal and power shortages. Kanoria said, “Growth is not exclusive to the industry, it helps the whole country.” adding the government’s spending should move more towards investments and away from subsidies.

Godrej said India needed some quick policy actions that would help revive investment, output growth and employment.

Dhoot said about 168 coal mine projects were awaiting clearances at various stages. “Large steel plants are not being cleared, despite waiting for decades. Many gas and oil exploration blocks are awaiting clearances,” he added.