Anxiety in India Inc. over stable govt: ASSOCHAM
UNCERTAINTY over the outcome of the coming Lok Sabha elections is likely to cast its shadow on the state of economy which is battling the twin challenge of slowdown and unabated inflation, an ASSOCHAM study has noted.
The study that captured the contemporary political economic situation observed that there was an increasing concern among the investors, industry leaders and economists over the prospects of an unstable government which may be forced to follow more of the populist and Left of the centre policies.
"While the country has learnt to live with the coalition governments in the last 15 years, it would require a strong anchor party supported by smaller parties which are committed to a strong growth model… However, regional aspirations and urge to go in for populist measures could create major road-blocks", says the ASSOCHAM study.
"The industry would need a big push from the new government in terms of reviving manufacturing and investment in the big ticket infrastructure projects requiring large scale financial debt…However, only a strong government will be able to come out with a credible blueprint," the ASSOCHAM paper pointed out.