Giving the Modi government 7 out of 10 for its first year's performance, industry body Assocham today said it still needs to cover some ground on tax issues and a lot more needs to be done on improving ease of doing business.

The country's macro-economic situation has improved in the past one year with decline in inflation, stability in currency and attractive financial markets, it said. "However, the NDA government has to cover some ground in terms of taxation issues, particularly with regard to FIIs' problems on retrospective liabilities and in taking big-ticket infrastructure projects off the ground," Assocham said in a statement.

It also said a lot more needs to be done on improving ease of doing business at the state level. "The industry and the commentators must realise that an economy of two trillion dollars, well integrated with the world, can't be catapulted into high growth, just with the change of the government. "

However much the government is sincere, policy tweaking, legislative changes and revival of investment appetite need to be followed by increase in consumer demand, and would take time of say, 24-30 months.

"And then, a lot would also depend on the global markets which are subdued," Assocham said.