Now, FM frowns at industry

A day after Prime Minister Manmohan Singh expressed disappointment over pessimism coming from India Inc, Finance Minister Pranab Mukherjee on Friday asked industry to work with the government, instead of merely repeating its grievances.

“If we have problems, it is for us to solve them. Merely reiterating the distressed condition is not going to help us,” Mukherjee said at the annual general meeting of the PHD Chamber of Commerce.

He also cautioned industry against reading too much into the government’s move to hold back its decisions on foreign direct investment (FDI) in multi-brand retail and pension reforms. He assured India Inc that the government was building a consensus over the two crucial moves and was committed to second generation reforms, in spite of hurdles.

“(Our) commitment to FDI, the Pension Fund Regulatory and Development Authority (PFRDA) Bill and all major legislation that are part of new generation of reforms is in the mind of the government. We are working to build consensus,” the finance minister said.

Since the economic growth fell to a nine-quarter low of 6.9 per cent in the second quarter of this financial year and the industrial production contracted by 5.1 per cent in October, industry has been urging the government to shed its so-called policy paralysis and give positive signals by taking up reforms agenda.

Industry is particularly upset about the government buckling under the pressure of its allies and the Opposition on FDI in multi-brand retail and pension reforms.

Explaining the circumstances behind the moves, the finance minister said the government wanted to push the PFRDA Bill, but could not do so because the UPA did not have the requisite numbers in the Rajya Sabha.

“We decided to have PFRDA legislated in this session of Parliament but could not do so... not because of lack of intention or commitment... you have to recognise the very hard fact that legislation require numbers, which the Indian electorate has, unfortunately, not given to us,” Mukherjee said.

On FDI in multi-brand retail, which has been put on hold, Mukherjee said: “Sometimes, we have problems and it creates confusion when even after announcement of a policy, the government has to stop... the people have given us limited mandate with which we cannot carry out sweeping reforms... that does not mean we have shelved those.” The revised PFRDA Bill, which seeks to give statutory status to the interim regulator and increase participation of the domestic and foreign players in the pension sector, was understood to have been stalled by the Trinamool Congress.