Can Chidambaram Mend the Indian Economy?

Bangalore: In 2011, the then Finance Minister, P Chidambaram stated the ministry’s goal as high growth with moderate inflation. In a situation where the inflation is high and growth is slow none can have a peaceful sleep, he told the Business Standard. There is no magic bullet, he added, “it has to be done through appropriate fiscal and monetary policies, which the government is trying to do."

Palaniappan Chidambaram, who as the Finance Minister had steered country’s strongest growth in the past two decades, has returned to the post as Pranab Mukherjee, now the country’s President, vacated the position. But in the 2012 scenario, sharp economic slowdown, struggling public finances and falling exports are what in store for the new minister.

He said a year back, quoting the history that, the problems of high inflation and low growth are not new to the country. In 1991, Manmohan Singh, the then Finance Minister, faced the same crisis, where he had to take strict measures such as inviting foreign investment, cutting down the expenditure, thus restructuring the budget brutally. But now, though the problem is same the ministry need to find more apt solutions, he added further.

Chidambaram, who is considered as one among those who know their challenges and perils before they get into to their jobs, he asked the PM to empower him to take tough decisions. This envisages a bright economic revival for the country.

When the PM’s Economic Advisory Council Chief, C. Rangarajan suggested P Chidambaram for the finance minister’s crown last time he said, “We think alike. We are on the same wavelength.”