New Delhi: The government has convened a meeting with the heads of top business chambers FICCI, CII and Assocham on Monday amid a deceleration in industrial production and perception of ‘policy uncertainty’.

Commerce and Industry Minister Anand Sharma would be holding consultations with the industry leaders, including FICCI President Harsh Mariwala, Assocham President Dilip Modi and CII Director General Chandrajit Banerjee, industry sources said.

Other corporate honchos who will be present in the meeting would be HSBC Country Head Naina Lal Kidwai, Bharati Enterprises Managing Director and Vice-Chairman Rajan Bharati Mittal, J K Paper Managing Director Harsh Pati Singhania, R N Dhoot of Videocon and Adi Godrej of Godrej group.

This would be Sharma's first interaction with the industry leaders after the government suffered a setback and was forced to put on hold its decision to allow 51 percent foreign direct investment in retail.

It is not only the industry but also the Reserve Bank which has expressed concern over "policy uncertainty", among other factors, affecting the economic growth.

"On the domestic front, growth is clearly decelerating. This reflects the combined impact of several factors – the uncertain global environment, cumulative impact of past monetary policy tightening and domestic policy uncertainties," the Reserve Bank said in its mid-quarter credit policy review, on December 16.

The Gross Domestic Product (GDP) growth moderated to 6.9 percent in second quarter of 2011-12 from 7.7 percent in first quarter of the fiscal and 8.8 percent in second quarter of 2010-11.

This was mainly due to contraction in industrial production by 5.1 percent in October. High cost of borrowing, sharp decline in rupee value have added to the problems of the industry.

Before pausing on December 16, the RBI hiked interest rates 13 times since March, 2010, to tame inflation.

(Agencies)