MUMBAI: Indian industry is barking up the wrong tree in criticising Prime Minister Narendra Modi ’s government for its woes, instead it should focus on setting its house in order, says KV Kamath, chairman, ICICI Bank.The business climate has changed under Modi with few complaining about a backlog in Delhi unlike the previous government where frequent visits were necessary to get projects moving, says the banker who shook the Indian banking industry from its slumber with his hard-driving style and use of technology in the first decade of this century.Businesses are not exploiting the level playing field created by the government as they are saddled with debt, he said.Any other reason that they come up with are imaginary, he added. “There is no policy paralysis,” Kamath told ET in an interview. “I can say this explicitly. I have had clients in the first six months come and tell me there is nothing pending in Delhi. These were large clients who always had something pending. This time there is no external shock. (It is) their own domestic woes in terms of bottom line, or debt. That I clearly see in their balance sheets. That, I see as the clear reason. All other reasons are imaginary reasons.’The ascension of Modi to the position of prime minister was greeted with euphoria among Indian business leaders. But with the administration approaching its first anniversary, disillusionment is taking hold. Many business leaders say Modi has failed to deliver them from the morass of red tape even as a sluggish economy continues to take its toll on the bottom line. Former disinvestment minister Arun Shourie recently said economy policy was ‘directionless.’ The key bill, which will make it easier for industry to buy land, is caught in a political battle with Congress Vice-President Rahul Gandhi accusing the government of being in the pockets of industrialists.Indian companies, especially infrastructure builders which have raised huge debt to build roads and power plants, sectors which have been afflicted by policy paralysis, are blaming the government for not doing enough. Fitch, a rating company, says one in three among the 500 largest corporate borrowers do not have enough margins to support even its interest payment. But Kamath says many issues such as the Bill to acquire land are “work in progress”. Interest rates, which have remained high for the past three years, are among the reasons that demand is not picking up. Unless demand picks up, corporate earnings won’t recover.“Mood is directly proportionate to your bottom line,” says Kamath. “If your bottom line is not happening, your mood is sombre. At this point of time, bottom line is hurting, so the mood is sombre.” As far as the consumer is concerned, interest rates would have to come down by 200 basis points to move the needle. In the area of infrastructure, banks are moving aggressively to take over assets from promoters who are struggling to find abler hands.Overall, fiscal 2015 earnings per share growth was around 8.5% based on companies that have announced earnings. For fiscal 2016, earnings estimates have been sliced to 18.4%, from 18.9% a week earlier, says Barclays . Despite slow earnings growth, and complaints that the government is not doing enough, the Bills enabling near privatisation of coal mining, permission to mine other minerals and higher investment in insurance by foreigners have been passed by the Parliament. The decade-old Goods and Services Tax has been passed by the Lok Sabha.Furthermore, international investors have been lured with quicker clearances and new avenues of economic growth, such as higher spending by defence and railways, is also being pushed, Kamath said. “You should have faith in the global positioning that India is having under this prime minister,” says Kamath. “You should have faith that legal action wherever is required is being taken on a host of issues. Playing field which is being conducive is being created. That much of a signal is enough for entrepreneurs to come and invest. Clearly if demand and bottom line are not happening, you are having woes with the banks. That is creating the sombre atmosphere.