Thu, 20 Sep 2012 16:52:49 GMT | By IANS

Strike estimated to cause economic loss of over $2 billion

New Delhi: The nation-wide strike against the government's decision to allow foreign direct investment (FDI) in multi-brand retail and hike in diesel prices is estimated to cause losses of Rs 12,500 crore (2.25 billion USD) to the Indian economy, the Confederation of Indian Industry (CII) said on Thursday.

Strike estimated to cause economic loss of over $2 billion (© AP)

"Today's bandh has been disruptive for business and trade in many parts of the country. While an exact loss for the entire economy is not known, it can be estimated that almost Rs 12,500 crore has been the loss to the country in terms of disruptions in production and trade," the CII said.

The industry association said the government should not roll back the recent reform measures under political pressure.

"Good economics seldom makes for good politics, and therefore it is important to communicate to the masses the merit and necessity of the reform measures announced by the government," the CII said.

In a rare show of unity, leaders of the Communist parties and the Bharatiya Janata Party (BJP) came together to denounce the government's decision to hike diesel prices and allow foreign direct investments (FDI) in multi-brand retail trade.

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