Singh: Indian growth hurt by criticism of government policies

Dec 23, 2011, 13:07 GMT

New Delhi - Indian Prime Minister Manmohan Singh has said that criticism of government policies by the country's business leaders was hurting economic growth, according to news reports Friday.

'I must confess that it is a little disappointing to sometimes hear negative comments emanating from our business leadership or be told that government's policies are causing slowdown and pessimism in the industrial sector,' said Singh, broadcaster NDTV reported.

'Such comments have added to uncertainty and have emboldened those who have no stake in our economic growth,' he told a meeting of corporate leaders in New Delhi on Thursday.

India's economic growth has slumped to 6.9 per cent in the July-September quarter, its slowest pace in two years.

The country has also been struggling to check high inflation, and investor confidence has been on the decline with foreign funds pulling out about 400 million dollars from the bourses this year.

Singh's government has been flayed over its handling of the economy, including lack of reforms and policy indecision in the aftermath of a string of government corruption scandals since last year.

Singh urged business leaders' support for government policies emphasizing that industrial investment and growth depended heavily on the 'expectations of investors.'

Singh said the economy was being affected by the eurozone debt crisis and sluggish US growth. He assured the business leaders that the government was serious about tackling graft and providing better governance.