New Delhi: On completing half-way mark, the UPA-II is grappling with tough economic situation amidst stubbornly high inflation and charges by a section of industry that government is slow on key reforms on banking, taxation and FDI.
Rupee touching all time low against dollar in the face of grim global outlook and capital outflows from the stock market have only added to the problems for the UPA government which assumed office on May 22, 2009 for the second term.
"The negative perception of decision-making paralysis within the government must be reversed now, or else the opportunity will slip by," Asssocham Secretary General DS Rawat said.
Reliance Industries Chairman Mukesh Ambani recently shared concerns expressed by eminent industry leaders like Azim Premji on policy paralysis affecting government decision making in the wake of several scams.
CII too said it was high time the second generation reforms picked up pace.
"There is a need for speeding up infrastructure projects, especially in the power sector. We need to see results of the recent initiatives like manufacturing policy and movement on FDI in multi-brand retail," CII Director General Chandrajit Banjerjee said.
Ficci Senior Vice President RV Kanoria said there are plenty of things which the government must take up.
"The global scenario is not good. If we get our policies right, it will be India's decade," he said.
In 2009-10, India's economic growth was 8 per cent that improved to 8.5 per cent in following year. But, amidst difficult global situation and rising interest rates, the GDP is expected to be below 8 per cent this fiscal.
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