Date:02/12/2008 URL: http://www.thehindu.com/2008/12/02/stories/2008120255901600.htm

Business

Corporates welcome portfolio change

Special Correspondent

NEW DELHI: Corporates on Monday hailed the appointment of P. Chidambaram as Home Minister, especially when Prime Minister Manmohan Singh has himself taken charge of the Finance portfolio.

Corporates noted that while bold policy responses are required to tackle the adverse effects of the global financial crisis, there was also an urgent need for “tougher laws” and a “stronger and firmer leadership” to tackle the menace of terrorism and Mr. Chidambaram could provide that in the Home Ministry.

Although the direct charge of the Finance Ministry would be an additional burden on the Prime Minister, business and industry are sure of Dr. Singh’s abilities as the architect of the country’s economic reforms and the liberalisation programme.

Challenges

FICCI Secretary General Amit Mitra noted that the challenge before Mr. Chidambaram would be to restore the people’s confidence in the country’s policing system and ensure that tougher laws are in place to deal with terrorists.

Echoing similar views, Associated Chambers of Commerce and Industry of India Secretary General D. S. Rawat said: “Chidambaram has done extremely well as Finance Minister and we are sure he will be equally successful in improving internal security.”

As for the Prime Minister, Dr. Singh has already involved himself directly in tackling the impact of the global financial crisis on India.

In particular, he set up a committee under his chairmanship to devise ways of overcoming the economic challenges.

“At a recent summit, the Prime Minister had listed several initiatives under way. These include fiscal measures like expenditure on infrastructure and monetary steps such as interest rates. All these relate to the Finance Ministry, which has come under his charge directly,” Mr. Mitra said. Besides, Dr. Singh is the only one in the Government who has served as Finance Minister, RBI Governor and Chief Economic Adviser and also as Secretary (Economic Affairs) and Deputy Chairman of the Planning Commission.

Noting that Dr. Singh had no other alternative and had to take up the Finance portfolio, Bajaj Auto Chairman Rahul Bajaj said: “We don’t have anybody in India who can be the Finance Minister, other than the Prime Minister.”