UPA govt gets 7/10 from Indian corporates: Assocham | business | Hindustan Times
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UPA govt gets 7/10 from Indian corporates: Assocham

About to complete the first year of its second term, the UPA government has received seven points out of ten for its performance from India Inc, who however remained critical of the lack of consensus on disinvestment policy and high inflation.

business Updated: May 16, 2010 15:50 IST

About to complete the first year of its second term, the UPA government has received seven points out of ten for its performance from India Inc, who however remained critical of the lack of consensus on disinvestment policy and high inflation.

The partial withdrawal of stimulus and low agriculture growth also drew flak from a majority of the 500 Chief Executive Officers (CEOs) surveyed by industry chamber Assocham.

"As such, majority of them felt that the UPA's performance could have been still better and may have scored more than seven points," the survey said.

The Congress-led government would complete its first year of the second term on May 22.

The government received rave reviews from corporates on its policies to reform education, modify FDI rules, simplify procedures and market regulator Securities and Exchange Board of India's (SEBI) initiatives to improve the capital markets.

On the education front, the respondents said the government's initiative has been praiseworthy both at the primary level and beyond.

They also said the steps taken by the capital market regulator to protect investors' interest have been extremely praiseworthy.

"This includes reduction in the listing period in case of IPOs and FPOs, removal of entry load in case of mutual funds and introduction of currency futures in yen and pound," the CEOs said.

From this month, SEBI has reduced the time between IPO close and listing of equity shares to 12 days from the earlier 22 days.

Respondents also praised the government for making FDI rules more investor-friendly and simplifying the procedures.

The government has allowed the Foreign Investment Promotion Board to consider projects involving FDI of Rs 1,200 crore against the earlier limit of Rs 600 crore.

The government has also placed all FDI rules in one document, aiming to making the policy more comprehensible to foreigners.

Even as corporates raised concerns over high fiscal deficit that may not be contained at the targeted level of 5.5 per cent this fiscal, the majority of them were unhappy over the government's move to partially withdraw the stimulus.

The government raised excise duty by two per cent to 10 per cent on non-petroleum goods to contain fiscal deficit that is estimated to have touched 6.7 per cent of GDP during 2009-10.