Show tight control over fiscal situation, populism: Chanda Kochhar

She said these are clearly the realities that “we are facing and I am sure that when a responsible government makes the budget, no one can run away from these realities. So, there will have to be a very tight control on both expenditure and populism”.

She added, “At the same time, one should also focus on what are positive steps that can be taken to increase the revenue side, and therefore one has to manage both the sides. Therefore, we need to kickstart generating cash flows. We would also have to look at how can be improve the supply side of food. We also need to think what we can do to the entire agriculture chain to reduce the wastage, make distribution more efficient. That way also, we can reduce some pressure when it comes to food inflation.”

Ms. Kochhar further said that as far as the Budget is concerned, “the other things that can be done are to give clarity about the prospective nature of taxation, and rules and regulations. I think that can again boost lots of confidence”.

Asked about her views and the stance taken by foreign investors about the new government, Ms. Kochhar said, “If I talk from the global investors’ point of view, they are watching the developments very closely. They are looking at what is happening in India and that they are doing with a lot of interest.”