The Associated Chambers of Commerce and Industry (Assocham) on Monday hit out at the government for lacking "political will" to solve pressing economic issues that confront the country.

"There is no political will. The economy is driven to the wall as no decision is being taken on issues related to oil price hike, intellectual property rights (IPR) and quantitative restrictions (QR)," Assocham secretary-general V Raghuraman told PTI.

After the confidence building measures initiated towards the end of last year, decision-making exercise has been put on hold once again since the previous government was toppled in April, he said.

Asked whether the recent turmoil in the ruling coalition due to the split that took place in Janata Dal has infused further instability in the political climate, Raghuraman said, "we are not worried over the government. Substantive issues are not getting discussed and resolved."

"Coalition politics is here to stay and we have to come to grips with this kind of uncertainity," he said adding the inertia in decision-making has to go.

Stating that serious business was not being conducted in Parliament, Raghuraman said debates related to important economic matters should get precedence.

He stressed the need for right policies for industry and exports to flourish and infrastructure sector to improve.

The chamber said the prospects of flow of investment from the US into India and bilateral trade, of late, have considerably improved despite different perceptions of the two countries on various issues.

The chamber has said various political and economic issues including intellectual property rights (IPR), India's textiles exports to the US, Super 301 and Special 301, restrictions of flow of Indian skilled manpower and elimination of quantitative restrictions on imports have not been able to hamper growth of bilateral trade.

Raghuraman, who was recently in the US to participate in Indo-US Joint Sub-Commission meeting, said US businessmen were looking at long-term commitments with their counterparts in India, specially in power, telecom, information technology, food processing and consumer goods. He said while the US's primary interest in India was to have an access to the country's emerging large markets for US products which are facing increasing competition in the developed markets, and to have higher return on investment, there was increasing realisation that the tapping of each other's market was mutually beneficial.

The US regards India's restrictions on imports of consumer goods, the negative list, high tariff regime, countervailing duties and cumbersome customs procedures as serious impediments to bilateral trade, specially in agricultural and consumer items.

The chamber said US businessmen have made a strong plea for opening of the insurance sector, more freedom to operate foreign banks, removal of restrictions on basic telecom services and on foreign equity and cross media ownership in broadcasting sector.

The US business community has also asked for signing of bilateral investment treaty, adequate protection to IPR and product patents, compliance with TRIPS obligations, stricter inforcement of copyright law, elimination of quantitative restrictions on imports under the balance of payment (BoP) cover, a comprehensive national energy and fuel policy and a finance policy to mobilise funds for infrastructure development.

The Indian side pleaded for extension of generalised system of preference (GSP) by 10 years and expansion of its scope to include a large range of products, removal of restrictions on entry and movement of Indian professionals, no unilateral action under the Special 301 and easing of protectionist pressures on the export of Indian textiles.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.