It’s only a couple of days since prime minister manmohan singh took charge of the finance ministry, and there is already a palpable revival in the business sentiment. The original architect of economic reformed in India has succeeded in giving hope that despite the multiple problems, the economy will be back on the growth path.

As part of his agenda for the economy, the prime minister has identified reviving investor sentiment, both domestic and international, as top priority. Following his intervention on providing clarity on tax issues, the finance ministry has come out with draft regulations on the general anti-avoidance rules(GAAR), which was well beyond 57- dropping below the 56 mark to the US dollar.

The last three years have been lack-lustre, with an economic policy under pranab mukhrjee reminiscent of the 80s.

Markets, investors and corporate India have high expectations that decisions will now be taken to kickstart the economy. A survey done by the industry body assocham has found that India inc’s confidence has witnessed a definite turn around with Dr. manmohan singh assuming charge of the finance ministry.

There is talk about lack of new reforms, but that is a not a sole reason for the show down. After all, India was growing at around8 percent for many years even without these reforms. Though the reforms are desirable, the main factor behind the standstill is that investments are not happening. And the reason for that is business is nervous over an unstable policy regime, overturning of decisions and contracts, and the negative publicity over scams in various sectors such as telecom, coal, mining and land acquisitions. Indian business houses have started investing overseas, where policies are in black and white with clear rules and regulations.

Says public policy expert ramesh adage, “first, there is no need to reinvent the wheel. A study of all subjects handled by GOMs and eGOMs must be undertaken immediately, and efforts made to reach conclusions so that policies are announced. This itself would yield positive results.