Within two months of taking charge, P Chidambaram once again proved why he is considered to be a business and market-friendly finance minister. Since he took charge of the finance ministry for the third time in late July, the stock market has rallied, rupee has appreciated, foreign investor flows have been robust and investor sentiment has undergone a sea change.
Key measures taken by the government since July 31 that have helped revive sentiment, making India the best performing market in the last two months:
- Hike in diesel prices and cap on subsidised LPG
- Opening up of sectors like retail and aviation for FDI
- Assured investors of stable tax regime
- Shome panel draft report recommends deferment of GAAR, removal of capital gains tax
- Putting disinvestment on fast track
- Allowing MFs and ETFs in Rajiv Gandhi Equity Savings Scheme
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FII inflows (since Jul 30)
$5.5 billion