FM to meet industry leaders on October 3

Industry leaders, who will meet Finance Minister P Chidambaram on October 3, are likely to impress upon the government to stay course on the reform measures despite opposition from some political parties.

Representatives of the three apex chambers—CII, Assocham and Ficci—will discuss with the Finance Minister how to further improve corporate confidence and boost growth, industry sources said.

The meeting comes in the backdrop of several recent reform initiatives taken by the government, including FDI in multi-brand retail and allowing foreign airlines to invest up to 49 per cent in the domestic carriers. Under the impact of global economic slowdown and domestic issues like high interest rate, India's growth has plummeted to 5.5 per cent in the first quarter of the current financial year.

Some of the recent reform measures have led to revival of confidence in the stock market and pick-up in the rupee rate, analysts feel that more needs to be done to boost growth. While the government has expressed its determination to carry forward the economic liberalisation, it is facing tough opposition from different political parties including key ally DMK on issues like FDI in multi-brand retail. Mamata Banjeree-led Trinamool Congress has already walked out of the UPA coalition in protest against the notification allowing 51 per cent foreign direct investment by global retail chains like Walmart into the sector dominated by the small Kirana shops.