The Associated Chambers of Commerce and Industry recently proposed that the government should convene a meeting of apex business associations and prominent industrialists to formulate a cohesive response to counter the negative effect of economic sanctions imposed by the US and other countries.

Assocham president L Lakshman said such an interaction meeting between the government and the industry after the nuclear tests would not only project a common stand on the issue, but also send right signals to the investors abroad.

PHD Chamber of Commerce and Industry (PHDCCI) has mooted despatching of "roving business ambassadors" abroad to re-assure the international business community that India would continue with its ongoing reform programme and welcome foreign direct investment. PHDCCI president OP Vaish, in a letter to finance minister Yashwant Sinha, suggested that thegovernment may consider identifying presidents of prominent industry and trade associations and senior businessmen to undertake such special visits abroad.

"This would restrengthen the growing spirit of government business partnership for overall economic development of the country and in meeting challenges arising out of the economic sanctions," Vaish said.

Assocham president L Lakshman said the concerned ministries can spell out detailed implications of reduced flow of funds in different sectors as well as their impact on the ongoing and future projects. These issues could be discussed at the meeting to work out short- and long-term strategies. Lakshman said the impact of the sanctions, particularly on the flow of private funds, must be studied and appropriate remedial steps taken.

However, he added that there was little possibility of trade sanctions being imposed since the trade was governed by the World Trade Organisation regime.