Jittery over the political crisis, leading CEOs do not want the mid term elections forced at a time when economy has found a “growth rhythm”.

In a quick survey of 235 CEOs done by ASSOCHAM Business Barometer (ABB), 91 per cent of the CEOs felt that “it makes no sense to face another elections on an issue of nuclear deal with US that would do a good to the country”.

Seventy three per cent of those surveyed said that snap polls would certainly derail the GDP growth rate averaging 8.6 per cent in last three years. “Political happenings has an important bearing on the health of an economy. The ongoing turmoil would halt the growth momentum,” the Assocham President and Videocon Chairman  Venugopal Dhoot said. 

The Survey was done between 22 August and 24 August 2007 when the key UPA supporting parties threatened to pull the plug on the Government if it went ahead with negotiating safeguards with IAEA.

Plan policies

Sixty eight per cent of them admitted that they realized implications of the threat to the Government at the fairly later stage dismissing the earlier warnings as mere political posturing.  As the current financial year is embarked with Eleventh Five Year Plan with defined programs and objectives, sixty seven per cent of the respondents felt that any new government would like to ‘revisit’ the Plan Polices.

This might affect the growth of the industry as long term corporate planning is done keeping in mind the governing policies, the Survey notes.

Finance Minister has proposed to introduce the new income tax code that will simplify and replace the fifty-year-old law by next year. As many as 86 per cent of the industrialists feel that in order to successfully bring about these reforms, it is essential for the government to peacefully complete its term.