New Delhi: India Inc on Monday expressed confidence that Finance Minister P Chidambaram's initiative to restore investor confidence and tackle high interest rates would revive business sentiment.
"At present, the country needs some good news and the statement of the Finance Minister would be a major business sentiment boosting measure", CII President Adi Godrej said.
He said the General Anti-Avoidance Rules (GAAR) should be deferred as economic conditions in India and the world are not conducive for any changes in the taxation policy.
The industry is hoping to see in the next few days some measures for economic revival, he added.
Hailing Chidambaram's roadmap for fixing problems relating to retrospective and controversial taxation issues, Assocham said foreign investors would find themselves reassured and the country should see improvement in fund flow from abroad.
On efforts to moderate inflation in the medium-term, it said dialogue between the Finance Ministry and the Reserve Bank is a step forward.
"Chidambaram has emphasised on containing the run-away fiscal deficit so that conditions could be created to bring down interest rates", the chamber added.
Ficci shared the views. "We hope that the Finance Minister will take necessary steps to boost investor confidence and revive the economic growth," its Secretary General Rajiv Kumar said.
The Finance Minister has directed a review of tax provisions that have retrospective effect in order to find a fair and reasonable solution to disputes between the tax department and assesses.
The industry has been clamouring for cut in interest rates and removal of policy bottlenecks holding up investment in big projects.
The economic growth during 2011-12 slipped to nine-year low of 6.5 percent with prospects for the current fiscal worsening in the first quarter.
The stock market also gave a thumbs up to the announcement by the Finance Minister.
The Sensex went up by 215.03 points or 1.25 percent to end at 17,412.96, its highest closing in four weeks.