Members of the Indian industry are optimistic about the prospects of the Indian economy as the new Finance Minister P Chidambaram has already lunched initiatives to revive the economic growth.

CII President Adi Godrej said that the statement from the new finance minister about efforts to revive the economy will significantly boost the business sentiment in the country. Mr. Godrej has said that the implementation of the General Anti-Avoidance Rules (GAAR) should be deferred as economic conditions in the country and the world are not adequate for a change in taxation policy.

Mr. Godrej said that the industry is expecting some efforts towards economic revival from the government in the next few days. Meanwhile, Assocham has praised Chidambaram's plans for issues relating to retrospective and controversial taxation issues. The association said that foreign investors will find themselves reassured and the country should see improvement in fund flow from abroad.

Assocham Secretary General Rajiv Kumar said, "Chidambaram has emphasised on containing the run-away fiscal deficit so that conditions could be created to bring down interest rates", the chamber added. Ficci shared the views. "We hope that the Finance Minister will take necessary steps to boost investor confidence and revive the economic growth."

Mr. Chidambaram has already initiated directed a review of tax provisions with retrospective effect in order to find an acceptable solution to the tax department and assesses.