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Tough times ahead for UPA Government: Assocham

Special Correspondent

Surge in oil prices and possible pressure on stock markets by global concerns would make his task more complicated

NEW DELHI: While terming UPA government's performance as "exceedingly satisfying" thus far, Industry body Assocham on Sundays that the Prime Minister Manmohan Singh is likely to face increasing challenges from his communist allies and rising global oil prices.

"The government has a difficult job ahead in striking a balance with Left parties. Surge in oil prices and possible pressure on stock markets by global concerns would make his task more complicated," the Assocham Business Barometer, which surveyed 250 CEOs and CMDs, said even as it rated the performance of the Congress-led UPA government as seven on a scale of 10.

The captains of industry appreciated the current growth pattern identifying rising crude oil prices as the major impediment in the country's growth.

It noted that the Government has not been able to pass on the burden of rising oil prices to consumers despite heavy losses faced by oil PSUs, and said that resistance from Left parties was the main issue in tackling the energy price pass-throughs.

Appreciating the Prime Minister for successfully pulling out the nuclear deal despite opposition from the Left parties, Assocham president Anil K. Agarwal, however, said the government and the Reserve Bank of India have to remain cautious about some of the global developments, which could have a damaging impact on Indian economy.

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