Assocham president R K Somany on Friday called for putting the domestic economy on the right track and enlist public participation in the reforms process for ensuring sustainable economic growth.
Addressing a press conference in Chennai, he said India acted faster to open up the external economy than the internal economy which was yet to be put on right track.
He said that had created a situation wherein anybody could import anything today much to the disadvantage of the domestic industry.
He said what happened after liberalisation was that the foreign companies had started looking at India just as a good market for selling their products than investing in India while they preferred China as good manufacturing base since costs in India was still higher.
Expressing concern over the plight of the Indian domestic industry he said that in the last six months alone oil prices had gone up by as much as 57 per cent and there was no way even one per cent of it could be passed on to the consumers by the various industries which consumed oil as a basic ingredient for production.
"Consequent to this profits of Indian industries are getting eroded leading to a fall in tax revenues of the government," he added.