A new business index based on robust economic parameters will be developed to indicate the strength of the corporate sector, Corporate Affairs Minister Veerappa Moily announced on Friday.

Speaking at a function organised by the Institute of Company Secretaries of India (ICSI), Mr. Moily said that a credible agency would be assigned with the task of developing the corporate strength index.

Speaking on the topic, he said, "This index will be based on robust economic parameters that will reflect the true strength of corporate sector."

The Corporate Affairs Minister also acknowledged the increasing concerns among investors over the overall pessimistic investment climate in the country.

When asked about the new Companies Bill, which is aimed at forming a good regulatory environment for comprehensive sustainable growth, Mr. Moily said that he hoped the Bill would be approved in the next session of Parliament.

He also underlined that India needed radical solutions to tackle social and economical issues.

According to recently released provisional government data, India's GDP grew 5.5 per cent in the three months to June. The figure is higher than analysts' average projection of 5.3 per cent, but it is far below the government's annual growth target of 9 per cent.