CHIDAMBARAM's ASSURANCES

Indian Finance Minister, Mr. P. Chidambaram, in New York on October 7, told the international business community that the Indian Government was “serious” about raising the limit on foreign direct investment in aviation, telecommunications and insurance, from 40 to 49 per cent, from 47 per cent to 74 per cent, and from 26 per cent to 40 per cent, respectively.

It so happens Chidambaram has already proposed to make the increases in the Union budget he presented in July. Why repeat them? He had a reason maybe. For he declared the increase in aviation would happen in one month, in telecommunications in the “near future” and in insurance on “approval” by parliament.

Distant, yet nevertheless, on the horizon. So is Chidambaram preparing investors in the meantime? Could they care less? Investment seeks opportunity. Welcome when available. Lost if not around there. No squabbles. No regret.

Why continue to have assurances then without any implementation? And that, too, from the finance minister of a country?

The real reason for Chidamabaram to come to New York and speak up was to tell the 61 communist members of parliament supporting the Congress-led government from the outside that it was implementing the budget proposals.

Even as the budget is passed by parliament, the proposals are still on paper, as they are opposed by the communist MPs. Chidambaram from NY was telling New Delhi MPs what the Government was going to do. He even set some limit in time.

It's a game of wait and see. Not for the international investing community but rather the Government itself actually.