Terming public sector reforms, except telecom and power, as a failure, Ramakrishna said the disinvestment process should be speeded up as the strategic sale did not depend on capital market conditions. The panel had recommended 21 cases of sale to strategic buyers and only three cases have been taken up so far. "However no financial advisor for the sale has been nominated and work has not progressed,"' he said.

Along with the strategic sale of shares, transfer of management of the PSU to the highest bidder -- foreign or domestic -- should have been taken up in the budget itself, Ramakrishna said at a meet organised by the PHD Chambers of Commerce and Industry (PHDCCI). Ramakrishna said if the government had resorted to strategic sale of shares in the 105 loss-making PSUs, it wouldhave managed to generate interest of foreign investors and "Moody's would have taken note of this".

He described the union budget as "inflationary and flip flop in nature", as the advice of the industry was taken too seriously, a statement by PHDCCI said here.

The economy can grow at 6.5 per cent if the government takes "right decisions" and takes reforms forward, Ramakrishna said. "The government did not prepare the economy to face the impact of sanctions," he added.