Moily blames opposition, allies for economic woes, rupee fall

An unhelpful opposition and problems related to coalition partners have resulted in the present economic uncertainties dogging India, leading to the weakening of the rupee, said corporate affairs minister Veerappa Moily.

Speaking to reporters on the sidelines of the 13th national conference of company secretaries in Srinagar, Moily said many key bills were not passed in Parliament because of the unhelpful attitude of the opposition. He also admitted problems relating to some allies in the United Progressive Alliance (UPA) were causing delays.

He said these political issues had resulted in unnecessarily delaying of key legislation, including the New Companies Act, the Direct Taxes Code, the Banking Amendment bill and the GST Act. Had these been passed, the economic situation would have definitely improved, said the minister.

''Had these bills been passed, perhaps they would have fortified our economy and insulated our currency,'' said Moily. ''These are all limitations. Of course we have to live with that, and these are the things which we would have to pay for sustaining democracy.''

The UPA government plans to table the new Companies Bill in parliament soon, he said. The bill, now before a standing committee for the second time, will facilitate a 'friendly atmosphere' for the corporate world.

Addressing the conference of company secretaries, Moily said India was a safe destination for investors. Though foreign banks and brokerages were lowering their estimates for GDP growth for the country (See: Foreign banks lower India's GDP estimates for 2012-13)

Moily was confident the Indian economy would expand at seven to nine per cent annually in the near future.

''Regardless of the short-term fears in the global markets, India is poised for a reasonable growth of seven to nine per cent in the years to come,'' he asserted. Investors should take advantage of the opportunities in India and start investing, he said.
 
He said India was poised to emerge as the world's largest economy by 2050 – even ahead of China and the US – up from the present ranking of the eighth largest economy. ''The economy is growing at a tremendous pace in all categories,'' he said. ''It is expected to grow five times in the next 20 years.''