A statement by the Ministry of External Affairs said the decision, a week after the US lifted differential economic sanctions against India and Pakistan, ``reflects the continuation of a coercive approach that is entirely misplaced and counter-productive.

The Confederation of Indian Industry didn't bother to hide its disappointment as well. ``The announcement shows lack of understanding, appreciation and sensitivity. (It will) impact on `sentiment,' a key intangible in trade and investment relationships,'' president Rajesh Shah said.

The industry is particularly furious about the fact that the US decision affects not only government nuclear and missile-related organisations like the Department of Atomic Energy and the Department of Space, but also puts on theblack-list big names such as Godrej and Boyce, Larsen & Toubro, Kirloskar and Walchandnagar Industries.

``This is the political price India has to pay for daring to go nuclear,'' government sources said.

They said that the decision would undoubtedly have an impact on the seventh round next week of the Indo-US dialogue to be held between the Prime Minister's aide Jaswant Singh and US deputy secretary of state Strobe Talbott. The CII president said the list would prevent any US company from doing business with those named on it. Vice-versa, the listed Indian entities would need to go through a licensing procedure.