Addressing a press conference here on Friday, he said overcapacity and lack of demand have prompted major companies to reduce their investments in domestic market. Despite the stimulative Budget, the economy is not growing at the anticipated pace.

Lakshman said the present economic condition is largely because of the political preoccupations. Due to political fractionalism the decision making has come to a halt. The enactment of the new company law has been delayed, PSU restructuring including divestment and privatisation, and financial reforms in banking and insurance sectors have been put on hold, he pointed out.

Emphasising the need for acceleratingreform process, he said the Union government should take necessary measures to mop up Rs 1,00,000 crore in the next five years through disinvestment of PSEs and elimination of non-merit subsidies.