LETTERS TO THE EDITOR
In his column Finance, an island of sense and continuity (March 18), Subir Roy has been unduly complimentary to the former finance minister, P Chidambaram. He has understood neither the Indian reality nor does he have a macroeconomic overview.
His focus was lopsided. Income tax, excise duties, company law and Fema, all are related to the manufacturing or the secondary sector of the economy. To a layman, it seemed that Mr Chidambaram ignored the farming, fishing and mining or the primary sector.
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He did nothing to reform the services or the tertiary sector. Apart from allowing some foreign banks to open branches, he did nothing to improve the quality of Indian banking as also insurance. Nor did he do anything specifically to encourage the leisure and entertainment sector. Apparently ignoring or neglecting three out of the economys four sectors does not amount to effective stewardship.
The results are there for everyone to see. The stock market remained almost dead as a dodo during Mr Chidambaram s tenure. For all Indian businessmen, from the shopkeeper to the biggest industrialist, the share market is the barometer of how the economy is doing. Unlike in Europe and America, comparatively few in Indian business follow other economic indicators. Instead of attending to this factor, Mr Chidambaram concentrated on the legal laundering of black money. The evaders got away with their loot while the more upright people felt demoralised. Neither category put its shoulder to the wheel of the stock market.