Corporate honchos, led by Infosys non-executive chairman KV Kamath and GVK Group vice-chairman Sanjay Reddy on Saturday called for long-term policies to revive sagging growth and blamed lack of policy clarity, coupled with high interest rate as the key reason for the current economic mess.
Delayed policy measures, slowdown in industrial production, elevated interest rates and liquidity concerns have moderated the growth prospects in the domestic economy, said Kamath.
"High interest rate is a very big challenge we have got. As far as the investment engine is concerned, interest rate is not the only issue there.
"Land clearances, environmental policies are not clear. And if that doesn't happen, you hold back your investments. There has to be clarity in all these things or there has to be confidence within the industry that these things will be handled properly (by the government)," Kamath told a University of Michigan-organised India business conference in Mumbai.
Infosys founder and chief mentor NR Narayana Murthy and Wipro head Azim Premji had also criticised the Centre for procrastinating on economic policy measures in the recent past.
It can be noted that after record growth numbers, the GDP had hit a nine-year low of 6.5% in FY12, which had led to a rash of growth revisions from almost all the international agencies.
What is more worrying is that as growth continued to tread south, there was a second round of GDP downward revisions in the past fortnight by many, including the RBI.
While the central scaled down its GDP forecast to 6.5%, many i-bankers and rating agency Crisil and Moody's Analytics brought down their forecasts to as low as 5.4-5.5% for this fiscal.