04 August, 2021

Balm Before The Budget

From the coalition web, the finance minister tries to allay fears of the investing community

Balm Before The Budget
When finance minister P. Chidambaram undertook his whirlwind visit to Mumbai last week, he had a single objective in mind—to help Delhi, the political capital win over the heart of Mumbai, the country's commercial capital. For, ever since the election results were announced three weeks ago, Mumbai has shown little faith in the new political regime at the Centre. The city has been unnerved by economic uncertainties, wracked by the socialistic overdrive of the Left parties that support the Congress-led coalition, and sobered down by the vagueness of the Common Minimum Programme (CMP).

The markets crashed initially, then moved up and down like a yo-yo. Foreign investors, especially the institutional ones, seemed ready to pack their bags. Even the local businessmen went into a huddle, unsure of what policies the new government is likely to pursue. Most economists openly criticised the CMP and other announcements from supporting parties, as well as the initial statements made by the various ministers. Finally, even global rating agencies thought that things could only get worse...

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