WHILE there are tentative signs of a recovery in the global economy, the survey warned that the recent rise in commodity prices, including that of crude oil, may work against a revival.

'That makes it difficult to forecast short- to medium-term growth prospects,' it said.

The survey urged a thorough review of the government's divestment policy and suggested that loss-making state-run enterprises be auctioned off.

It also called on New Delhi to allow 49 per cent foreign equity in defence production and 100 per cent in high-technology defence equipment, and to open the Indian market to multi-brand retailing.

Mr Amitabh Chakraborty, president of Religare Capital Markets, said the survey was 'refreshing' but warned that 'implementation would be the key'. 'It would be a challenge to realise many proposals outlined in the survey, but some of these are likely to be initiated in the forthcoming budget. The government is now serious about going ahead with reforms,' he said. -- AFP