India Inc has given the United Progressive Alliance government a 65 per cent score, a shade better than Prime Minister Manmohan Singh's own assessment of 60 per cent on completion of one year in office, a survey by an industry chamber said on Thursday.
The ASSOCHAM Business Barometer Survey of 250 top CEOs and CMDs said the UPA government has done reasonably well in the areas of financial sector reforms, capital market buoyancy, industrial growth and external sector. However, it was found lacking in terms of divestments, labour reforms and infrastructure development.
Of the 250 top CEOs and CMDs surveyed, 188 rated the UPA government as 'good' in terms of its performance in the financial sector, pushing industrial growth, promotion of foreign direct investment, and keeping stable interest rates despite inflationary pressures, it said.
The CEOs ranked Manmohan Singh's government as 'good' in seven out of 12 parameters, giving it 65 out of 100, it added.
The parameters on which the country's industry leaders were asked to give their comments were: boost to agricultural growth, pushing industrial performance, labour reforms, infrastructure development, power sector reforms, financial sector reforms, attracting foreign direct investment, tackling inflation and rising energy prices, interest rate stance, divestments, capital market and export promotion.
"We give the government slightly better score on completion of one year. We are quite optimistic that it would come out with more decisive steps in the coming years", ASSOCHAM president Mahendra K Sanghi said after releasing the ABB Survey.
The areas in which the government was found lacking and was ranked either 'average' or 'poor' included power sector reforms, infrastructure development, labour reforms and divestment. However, in all other parameters, the government managed to get the 'good' grading.
Seventy-eight per cent of the respondents applauded the government's financial sector reforms. Measures like introduction of the Value Added Tax and allowing 74 per cent equity for foreign entities in Indian private sector banks have gone down well with the industry, it said.
Corporate leaders interviewed by ABB expressed satisfaction at the robust growth of 8.8 per cent shown by the manufacturing sector in 2004-05 as compared to 7.4 per cent in the previous year. As many as 79 per cent of CEOs and CMDs gave credit to the government for providing an enabling environment for industrial sector growth.
Over 60 per cent of respondents surveyed applauded UPA government for remaining on the reforms path despite pressures from the Left parties, it said.
However, the industry leaders rated the performance of the government as 'poor' in pursuing labour reforms and divestment of public sector units.
When it came to infrastructure development, the CEOs felt that while the UPA government announced grandiose plans, it has not been able to implement them. As many as 67 per cent of respondents were not so optimistic about the steps taken for infrastructure development, the survey said.