CHIDAMBARAM WOOS INVESTORS

India’s finance Minister, Mr. P. Chidamabaram, did the impossible though unavoidable. He went down to Mumbai on October 29 specifically to woo investors in the financial capital and specifically to talk of its people’s proven ability and expertise as well the mega polis’s ever increasing interests in attracting investment to take all of the country forward.

Come to think of it there was a shade of manner in ways he went about it in post-election Congress-led Central Government to carve Mumbai out as say Shanghai in China as a showpiece to the world to draw investors out in and to India.

For not only did he talk of “open gateway to foreign direct investment as well as for Indians to go (investing) global,” but also of targeting Mumbai’s interests and developing it as a global outsourcing hub for financial services and a trading hub for bullion and currency markets.

How splendid!

But he also did the unthinkable. He surely was to do it. Inasmuch as investors were required to be encouraged because of the severe shock they had suffered before. But the way he did it appeared to hurt investors rather than assuage them. He talked of the market crash of May 17 which was after the country had voted Congress and the party had enlisted Left members of parliament for support to form a government.

Bombay Stock Exchange’s Sensitive Share Index slumped that day 565 points as the crash wiped out Rs.1, 24,00,00 million of investors’ money. Recalling Chidambaram said the Securities and Exchange Board of India, the equivalent of the SEC, was now completing its inquiry into the crash which, he said, was “caused by irrational behavior and perceived fears and anxiety.” e then observedHe then observed that the “culprits are being brought e to book.”

“Culprits” in investors, Mr. Finance Minister? Or simply bewildered people?