<p>The industry in India Wednesday asked the government not to roll back the recent reform measures like foreign investment in multi-brand retail and hike in diesel prices under political pressure.<br /><br />Such a step, industry leaders said, would raise questions about the government's ability to take policy decisions and dampen business sentiments. <br /><br />“The government should not roll back... It will send a signal that the government is not capable of taking decisions," said R.V. Kanoria, president, Federation of Indian Chambers of Commerce and Industry (FICCI). <br /><br />Kanoria said the growing controversy over the government's decision to allow overseas investments in retail and aviation sectors was unfortunate. The government last week took a decision to allow up to 51 percent FDI in multi-brand retail and opened up the aviation sector to 49 percent investment by foreign airlines in domestic carriers. <br /><br />The government has also announced the sharpest ever Rs.5 per litre or 12 percent increase in diesel price. These decisions have created political turmoil in the country with a key ally of the United Progressive Alliance (UPA) government, the Mamata Banerjee-led Trinamool Congress, deciding to pull out from the government demanding a rollback. <br /><br />Kiran Mazumdar Shaw, chairperson and managing director of Biocon, said FDI in retail would help the Indian economy and people and those political leaders opposing the decision were not progressive. <br /><br />“Good economics does not make for good politics. The poverty card suits political agendas. Vote banks remain solid if the poor remain poor,” Shaw said at micro-blogging site Twitter. <br /><br />“We need clean and progressive politicians. No doubt Mamata (Mamata Banerjee) is spotlessly clean but she is not progressive,” Shaw said. Anand Mahindra, chairman of Mahindra & Mahindra, also urged the government to remain firm on the reform process. <br /><br />“We urge the government to stand its ground. Right-thinking Indians will be less than amused by partisan politics in a fragile economy,” Mahindra said. <br /><br />Opposition parties have called nationwide strike Thursday protesting against the government's decision to hike diesel prices and allow foreign direct investments in multi-brand retail and aviation sectors. <br /><br />Addressing a media conference here, FICCI president Kanoria urged political parties to reconsider their decision to go for the strike, saying it would cause huge loss to the economy. <br /><br />"FICCI urges all parties to reconsider such proposed actions as these will result not only in national losses which the nation can ill-afford, but also directly affect mainly the poorer sections of society and daily wage earners," he said. <br /><br />Kanoria said: "There is a large consumer base in India which is capable of buying." <br /><br />"We urge the government to consider proceeding with much needed deeper reforms, as the steps taken in the past week have signalled just a start to a comprehensive reforms process," he said.</p>
<p>The industry in India Wednesday asked the government not to roll back the recent reform measures like foreign investment in multi-brand retail and hike in diesel prices under political pressure.<br /><br />Such a step, industry leaders said, would raise questions about the government's ability to take policy decisions and dampen business sentiments. <br /><br />“The government should not roll back... It will send a signal that the government is not capable of taking decisions," said R.V. Kanoria, president, Federation of Indian Chambers of Commerce and Industry (FICCI). <br /><br />Kanoria said the growing controversy over the government's decision to allow overseas investments in retail and aviation sectors was unfortunate. The government last week took a decision to allow up to 51 percent FDI in multi-brand retail and opened up the aviation sector to 49 percent investment by foreign airlines in domestic carriers. <br /><br />The government has also announced the sharpest ever Rs.5 per litre or 12 percent increase in diesel price. These decisions have created political turmoil in the country with a key ally of the United Progressive Alliance (UPA) government, the Mamata Banerjee-led Trinamool Congress, deciding to pull out from the government demanding a rollback. <br /><br />Kiran Mazumdar Shaw, chairperson and managing director of Biocon, said FDI in retail would help the Indian economy and people and those political leaders opposing the decision were not progressive. <br /><br />“Good economics does not make for good politics. The poverty card suits political agendas. Vote banks remain solid if the poor remain poor,” Shaw said at micro-blogging site Twitter. <br /><br />“We need clean and progressive politicians. No doubt Mamata (Mamata Banerjee) is spotlessly clean but she is not progressive,” Shaw said. Anand Mahindra, chairman of Mahindra & Mahindra, also urged the government to remain firm on the reform process. <br /><br />“We urge the government to stand its ground. Right-thinking Indians will be less than amused by partisan politics in a fragile economy,” Mahindra said. <br /><br />Opposition parties have called nationwide strike Thursday protesting against the government's decision to hike diesel prices and allow foreign direct investments in multi-brand retail and aviation sectors. <br /><br />Addressing a media conference here, FICCI president Kanoria urged political parties to reconsider their decision to go for the strike, saying it would cause huge loss to the economy. <br /><br />"FICCI urges all parties to reconsider such proposed actions as these will result not only in national losses which the nation can ill-afford, but also directly affect mainly the poorer sections of society and daily wage earners," he said. <br /><br />Kanoria said: "There is a large consumer base in India which is capable of buying." <br /><br />"We urge the government to consider proceeding with much needed deeper reforms, as the steps taken in the past week have signalled just a start to a comprehensive reforms process," he said.</p>