FDI in multi brand retail was a significant reform and the larger message that corporate India took heart from it was that the government was finally breaking away from the policy paralysis and getting serious about pursuing second generation reforms. However, the backtrack now seems have left India Inc with more than just disappointment.
"I am disappointed with the multi-brand FDI decision not being implemented. Politics is again coming in way of economic reforms," said Adi Godrej, Chairman of Godrej Industries. In an exclusive interview to CNBC-TV18, Godrej said that India has sent a 'bad message' to the world with the failure of the reform. "We have had very less reforms in 2011; hardly any bills have been passed. However, I am glad single brand retail reforms are going through," he added. Godrej also held that the retail reform announcement during session was a mistake on the part of the government. "Corporate India today is caught in between the government and the opposition," he said. However, he added that he is hopeful that the Goods and Services Tax (GST) will be passed by October 2012. Below is an edited transcript of Adi Godrej's exclusive interview to CNBC-TV18. Also watch the accompanying video. Q: Is corporate India more disappointed with the fact that it now looks like the second generation reforms are going to be put into the cold storage and on a backburner once again? A: It is disappointed that the decision that the cabinet has took is not being implemented and I think politics has come in the way of economic reform. LetDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
