CII president, Rajesh V Shah, said that this action of the US government is uncalled for, untimely and harmful to Indo-US business. After partial lifting of sanctions against India last week, the release of an entities list on Friday reflected inconsistency of US policy towards India and particularly Indian industry. This has created confusion about US strategy towards India, said Shah.

The CII felt that the Union government has shown firm and clean commitments to economic reforms and their continuity. In such a context this development showed lack of understanding, appreciation and sensitivity, the chamber said.

The list would impactsentiment, which is a key intangible in trade and investment relationships. The CII, which worked consistently, to strengthen Indo-US economic and business cooperation was deeply distressed by this action of the US government, the chamber added.

By its action, the US is harming not only Indian companies, but US ones as well, and as a result trade is bound to be hit adversely, the CII said.

The CII president further said that this action, adding to the US decision to continue with the denial of World Bank and IFI financing of infrastructure projects in India made the going very tough. Shah felt that infrastructure in the country offered a major investment opportunity for US corporates.