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BANGALORE: Two men identified closely with the spectacular growth of India’s software industry have torn into the United Progressive Alliance regime, accusing it of mismanagement that is threatening the country’s economic prospects.
 
The remarks by Azim Premji and NR Narayana Murthy expressing disenchantment with the Manmohan Singh government reflect a widespread sentiment in corporate India that is most often not expressed openly.
 
Murthy, who co-founded Infosys, India’s second-largest software exporter, was stinging in his criticism of the UPA regime, particularly Singh, telling Morgan Stanley Research that between 2004 and 2011 India has not introduced many reforms.
 
"There was a lot of confidence that India would indeed do whatever was necessary because the person who was the face of economic reforms in 1991 is our current PM. Therefore, there was a lot of expectation from outside India," he was quoted as saying in a June 11 report.
 
"Over the past 3-4 months, India’s image seems to have suffered. As an Indian, I feel very sad that we have come to this state," he said.
 
For many months, the Congress-led government has been accused of being too afraid to take bold decisions while growth and investment slow down, inflation and deficits remain high and the rupee slides. The government insists it is doing all it can and has pointed to factors beyond its control, such as coalition compulsions, costly crude oil and the debt crisis in Europe.
 
’Country without a leader’
 
Premji, the founder and chairman of Wipro, said at the company’s analyst meet in Mumbai on Monday that "we are working without a leader as a country".
 
He was speaking on the same day that ratings agency Standard & Poor’s said India could become the first BRIC nation to lose its investment-grade status. At least five analysts who attended confirmed his remarks to ET and said that Premji also spoke about how policy paralysis is hurting investor sentiment.
 
Twice last year, a group of 14 eminent citizens, among them Premji and Deepak Parekh of HDFC, wrote open letters to India’s leaders urging swift action to improve governance. They have been maintained public silence until now.
 
Parekh renewed his criticism of the government in the company’s annual report, blaming it squarely for the ebbing business confidence and wariness in the investment climate.
 
Late last year, the government flattered to deceive by first announcing a rule change that would allow foreign investment in multi-brand retail and then walking back on the decision after pressure from allies.
 
Since then, the government has amended tax laws retrospectively, scaring foreign and Indian investors alike, while economic expansion has slowed to its slowest pace in nearly a decade. On Monday, the statistics office announced that industrial output grew by a mere 0.1%.
 
"This is where the government should not send the kind of signals that it has recently sent by introducing tax laws on a retrospective basis. Nobody can understand intentions; people only read the laws and then act," Murthy was quoted as saying.