L&T critical of policy delay
New Delhi: Country's largest engineering and construction firm Larsen and Toubro (L&T) Monday joined the likes of Infosys chairman emeritus NR Narayana Murthy and Wipro head Azim Premji to criticise the Congress-led government for procastinating on economic policy measures.
"Delayed policy measures, slowdown in industrial production, elevated interest rates and liquidity concerns have moderated the growth prospects in the domestic economy," L&T said in the "outlook" of its business in its results' press relaese Monday.
"This together with the uncertainties in the global markets, have impacted the investment sentiment, restricting thereby the business opportunities for capital goods industry," it added.
L&T's frustration might have stemmed from the fact that its net sales were down by more than 35 percent in the first quarter of the current fiscal to Rs 11,956.36 crore, from Rs 18,460.90 crore in the previous quarter.
The Manmohan Singh-led UPA-II government had been facing flak from different quarters including the domestic industry and trade leaders for policy inaction. Rating agencies also joined in and warned that India could be downgraded to junk status.
HDFC Chairman Deepak Parekh had earlier raised concerns over the slow pace of economic reforms and lack of required policy measures. Narayan Murthy and Premji too criticised what they called was policy paralysis in the government.
Singapore Prime Minister Lee Hsien Loong, who was in New Delhi recently, criticised India's business environment as "complicated".
India's GDP growth hit a nine-year low at 6.5 percent in 2011-12, impacted by current account defict, subdued foreign direct investment, high inflation and the disturbances in the "West" among others.
However, like others, L&T also pinned hope on the renewed thrust of the government for bringing the economy in order and do away with the shackles that were holding the growth prospect.
"Going forward, the ensuing months could witness renewed focus on economic reforms for improving the investment momentum and attracting capital inflows," L&T said, adding that select markets in the West Asia, South East Asia and CIS countries hold promising prospects.