New Delhi June 13 – Three quarters of leading Indian companies have
lost faith in Prime Minister Manmohan Singh’s second-term government,
saying a governance crisis ranging from corruption scams to policy
limbo will hit economic growth and their investment plans.
A survey of 75 leading companies by the Economic Times newspaper and
Federation of Indian Industry and Chambers of Commerce (FICCI) is the
latest sign of corporate unease with the Congress party-led coalition
government in a country where grievances from companies are rarely
aired in public.
Singh has been besieged by corruption scandals, including a $39
billion telecoms scam that saw a minister fired and parliamentary
bills blocked by the opposition, as well as anti-graft hunger strikes
by a civil activist and a yoga guru that galvanised many Indians.
The survey, published on Monday, said 80 per cent of companies
believed that decision-making by the government had slowed and 72 per
cent feared investment plans would be hit.
Ministers have repeatedly shrugged off criticism over the government’s
handling of the economy, pointing out that growth was among the
highest in the world. Critics say growth is driven despite the
government, not because of its policies