New Delhi: The failure of the government to control sluggishness in economy has been a proven fact now but is the Centre itself responsible for the mess? Going by the inconsolable condition of the manufacturing and mining sector in India, the indecisiveness of the government seems to be the major stumbling block.

Chief Economic Advisor of Finance Ministry Kaushik Basu has accepted that the delay in taking decisions by the government has led to the worsening of the situation.

Prior to him, many top industrialists including Mukesh Ambani, Azim Premji and Deepak Parekh along with eminent economists have already accused the government of indecisiveness.

It is to be noted, the Union government reeling under accusations of corruption and blackmoney could not take any prominent decision from January to September in 2011.

Concerned over the government’s attitude, major industrialists met Finance Minister Pranab Mukherjee to discuss the issue, but in vain.

The main cause of decline in the GDP growth rate is the manufacturing and mining sectors which have been the worst sufferers of the government’s apathy as in spite of the initial preparations, the government took ten months time to implement the new manufacturing policy.

In order to contain the increasing inflation, the Reserve Bank of India was forced to raise the interest rates which worsened the condition of the industries. The common man is now facing double wrath of rising prices as well as higher interest rates.

The Centre is aware of the fact that the environmental concerns are posing a hurdle in the mining projects. Though the government had constituted a committee for the purpose, the step proved to be a damp squib.

The polices which bore the brunt of government’s indecisiveness are:

1.    No decision on increasing the coal allotment to power companies

2.    Delay in implementation of new manufacturing policy

3.    Government’s apathy towards Goods and Service Tax (GST) and Direct Tax Code (DTC)

4.    Company Bill was given final nod after 2.5  years of delay

5.    Failure of governmental policies,  uncontrolled interest rates

6.    Significant economic bills fell victim to political fracas

JPN/Bureau