Corporate luminaries exaggerate economic difficulty: Moily

He also said some "corporate luminaries" are exaggerating the difficulties.

"Indian economy is passing through some difficult times with the slowdown and it is further aggravated by misconceived perceptions created by a section of national and international agencies," Moily said.

Noting that the fundamental strength of the economy is being completely overlooked, the Minister said there is no need to be pessimistic.

Many global financial agencies and credit rating firms have turned bearish on India's growth prospects in the past few months.

Moily, who also has the charge of Power Ministry, was speaking at a function organised by industry body PHD Chamber.

According to him, it is now widely accepted that negative sentiments and perceptions largely emanated from a few budgetary provisions such as introduction of GAAR and certain amendments with respect to retrospective effect.

"Some of the leading corporate luminaries tend to exaggerate the recent difficulties to the extent that they start comparing present situation to that of 1991 and (even say) the present situation is worse than that...," he said.

Stating that such people must be talking in isolation, Moily noted that such perceptions are devoid of merit and disconnected from reality.

In recent times, some corporate leaders such as Infosys co-founder Narayana Murthy and Wipro chief Azim Premji have voiced concerns about the investment climate in the country.

There has been apprehensions about the overall investment climate in the country, especially in the wake of proposals for GAAR and retrospective amendments on the tax front.

Also, the national economy is grappling with slowdown and recorded a growth of just 5.5% in the April-June quarter, the decade's worst performance for any first quarter of the fiscal.