No policy paralysis, but sentiment weak: Sharma

Commerce minister Anand Sharma on Monday asserted that the decision to allow foreign direct investment (FDI) in multi-brand retail was suspended and not cancelled, and the government would start fresh talks with stakeholders to bring it back on the table.

Reacting to charges by industry leaders that the government was not doing enough to push reforms, he said, "I do not think there is a policy paralysis. Sentiment has been low. The government is committed to the reform agenda.

The issue came up at the minister's meeting with prominent business leaders, including JK Paper managing director Harsh Pati Singhania, FICCI president and Marico chairman Harsh Mariwala, Bharti group chairman Sunil Bharti Mittal, Sunil Kant Munjal of the Hero Group and HSBC chief Naina Lal Kidwai.

Emerging from the interactions with industry representatives to discuss the current slowdown in growth and industrial production, Sharma said the government was aware of the situation and was working out policy initiatives to put the growth back on rails. He said global sentiment, especially the crisis in the euro zone, had affected industrial growth and exports.

Sharma said he had reviewed the progress of several mega projects, particularly in the power sector. Issues like the high cost of credit, depreciation of the rupee and declining industrial production also came up for discussion. "Industry feels and the government also accepts that it (mega projects) should be regularly monitored so that the project approvals are put on a fast track," he said.

On reviving industrial growth, he said the government and the industry are in regular dialogue and are discussing ways to increase the factory output.