The AIADMK's withdrawal of support to the 13-month old coalition government at the Centre has pushed the country to political brink, he said adding ``I sincerely hope that politicians do not hold the country to ransom by an act of filibustering or stonewalling the process of passing the budget.''

In a statement here, Trivedi said the absence of a consistent and stable economic policy and political uncertainty affects flow of investment, both from within and from outside thereby harming the growth process.

Political stability and economic strength must override political one-upmanship, especially at a time when the country is ringed in from all sides by hostile forces on account of Agni II and Pokharan tests, he stated.

``The situation is so uncertain that I cannot be certain of theturns and twists but I am now convinced that political stability is imperative for the success of economic democracy in this country,'' Trivedi added.

The Delhi-based Assocham said that major political parties should aim towards consensus on a common minimum economic agenda to arrest the long-term adverse fall-out of the current political developments at the Centre.

"Keeping the country's larger national economic growth interest in view, it is time to rise above narrow and myopic gains and save the 1999-2000 budget proposals which have been acclaimed as the most pragmatic in the prevailing economic milieu by industry and economists alike," Assocham President KP Singh said.

Expressing concern over economic growth measures being thrown in the vortex of political brinkmanship, the Chamber President has written to the Lok Sabha speaker and Deputy Chairman of the Rajya Sabha to strive for an agreement among political parties over the fate of economic legislations.

Though political developments of the kindcurrently facing the country are inevitable in a democratic country, it could not have been more ill-timed, he said. "Saving the budget proposals and giving the right signals to the domestic and foreign investors of the continuity of economic reforms has assumed a new sense of urgency at this critical juncture," Singh said.

Assocham chief said India needs to arrest the trend of political squabbles being a bane of economic decision making the move towards a higher growth trajectory.

Though political parties individually swear by the need to keep economic agenda out of the political ring, a common minimum economic programme of action has eluded the political leadership, Singh said.

Referring to the protracted slide in the capital market, he said the latest political skirmishes taking a toll on the share market was "unfortunate and spoke volumes of our political predicament."

Singh said if the current political stalemate was allowed to continue it would lead to a number of vital economic legislations inthe pipeline to pull the economy out of the morass being put on the backburner. "Saving the budget is the foremost requirement, for, the consequences of its failure would be disastrous," he said.

Assocham President said foreign and domestic investors would shy away from the country if they were not sure of a stable fiscal regime. "If the budget fails to get passed there will be not only accentuation of the previous year's problems but also a complete roll-back of new customs and excise rate," he said.

The revenue implications of such an event would be disastrous and the next government would have no choice but to hike the duty rates which would further aggravate the situation, Singh said.

Singh said with the industrial production and exports showing only a marginal rise during February 1999, injury to any one sector will harm others, more directly the stock market and industry.