A survey has reveled that three quarters of major companies in India are unhappy with the Manmohan Singh government over its governance crisis. The reason for the ire ranging from corruption scams to policy limbo will prove detrimental to economic growth and company's investment plans.
The survey was carried out among 75 leading companies by the Economic Times newspaper and Federation of Indian Industry and Chambers of Commerce (FICCI). In a first-of-its-kind public show of dissatisfaction by India Incorporate, the indication only shows the unease among corporate houses towards the ruling government.
The survey also pointed out the companies' belief with as many as 80 percent believing there was a slow-down of decision-making by the government and close to 72 percent fearing that investment plans would be hit. The President of FICCI, Harsh Mariwala has been quoted as saying, “The prevailing negative sentiment among domestic investors will have a bearing on the perception of foreign investors."
Another survey carried out by the Economic Times and Synovate that included executives from 43 leading companies revealed that 63 percent people believed the governance crisis is likely to hit India's growth. Calling it the 'paralysis in the government' and quoting the 2g spectrum scandal that has led to a loss of $39 billion to the country's exchequer has made companies and investor's wary.
The scandal has also exposed the face of Corporate India with stalwarts on Indian industry like Anil Ambani, Ratan Tata and Prashant Ruia along with other top executives being questioned, a scenario that has emerged for the first time in recent history.
Earlier in Jan, a group of 14 public figures which included industrialists to former central bank governors in an open letter slammed the government stating that corruption and bad governance is threatening India's growth story.