Straight from the Specialists
(Any opinions expressed here are those of the author and not those of Reuters)
When P. Chidambaram entered the corridors of North Block in August last year after his appointment as India’s finance minister for the third time, he had his work cut out.
India was facing fiscal and current account deficits, an infrastructure bottleneck, high inflation, slowing growth and an increasing subsidy burden. Adding to the country’s woes was the threat of a rating downgrade.
While Asia’s third-largest economy is showing signs of reviving after Chidambaram took over at the ministry, it’s still too soon to pass judgement. One of the critical milestones still ahead is the annual budget which he will unveil on the last day of February.
When Chidambaram was finance minister between 2004 and 2008 in the first UPA government, things were different. The India story was at its peak and his budgets were cheered by the markets. This time around, while domestic risk factors such as inflation and low growth haven’t yet receded, the Congress-led government is set to face polls in a year (if not earlier). So the question is — will Budget 2013 be reformist or populist?
(The views expressed in this column are the authors’ own and do not represent those of Reuters)
Considering the fast growing Indian economy and level of M&A activity in India, a need was felt to review the current Takeover Regulations of 1997.