New Delhi: The statement by Prime Minister Manmohan Singh in both Houses of Parliament on Friday on the state of economy in the country failed to assure the corporates and address the apprehensions of the industry. In a conversation with Karan Thapar on Devil's Advocate, Godrej group chairman Adi Godrej said that the Prime Minister's speech had nothing in it to cheer India Inc.
Reacting to the speech by the Prime Minister, Godrej said that he did not commit himself too much and was trying to justify why things were as they are. He also contemplated on the reasons that might have lead to a negative image for India on the global platform.
Quoting the bringing of the retrospective amendments in the budget two years ago on the Vodafone case after a Supreme Court judgment as one of the biggest mistakes by the Prime Minister, he said that the decision created a tremendous negative perception of India on foreign shores.
Godrej also said that the Prime Minister in his speech forgot to address one of the biggest problems of poverty which has worsened considerably in the recent past according to all the ratings including World Bank ratings.
Here is an excerpt of the interview:
Karan Thapar: The Prime Minister's statement in Parliament, are you reassured or has he lifted your confidence levels or do you feel he spoke to generalities and mainly repeated things said several times previously by Mr Chidambaram.
Adi Godrej: Well the Prime Minister spoke as I would expect him to speak not committing himself too much in that speech to Parliament. I think he was trying to justify why things were as they are. I think he has overlooked some facts in that speech. I think one of the biggest mistakes he made when we brought in retrospective amendments in a budget two years ago on the Vodafone case after a good Supreme Court judgment. I think that created a tremendous negative perception of India on foreign shores. I think some of the actions we have taken against foreign companies on tax matters also created a negative perception. He forgot one of the biggest problems has been that doing business has always been poor and it has worsened considerably in the recent past according to all the ratings including World Bank ratings.