Date:01/12/2008 URL: http://www.thehindubusinessline.com/2008/12/01/stories/2008120151450300.htm

Back India Inc reacts positively to Cabinet shuffle

Our Bureau

New Delhi, Nov. 30 The corporate world reacted optimistically to Mr P. Chidambaram taking over as the Union Home Minister and the Prime Minister, Dr Mammohan Singh, presiding over the Finance Ministry.

Officials in the top echelons of the corporate and banking industry said that they did not see Mr Chidambaram’s new portfolio halting the reform process.

With the confidence exuded by Mr Chidambaram, the industry feels that he would be able to garner similar support in his new portfolio as well.

“Mr Chidambaram has done extremely well as Finance Minister and we are sure he will be equally successful in improving the internal security,” said Assocham Secretary-General, Mr D.S. Rawat.

Mr Ganesh K. Gupta, President of Federation of Indian Export Organisations (FIEO), also said that he would provide the right kind of leadership required to deal with internal security.

Dismissing the impact of the Cabinet reshuffle on the current polices, the UTI Mutual Fund Chairman, Mr U.K. Sinha, said that decisions such as liquidity measures have been taken by the RBI and the Government at the highest level.

“The existing policies would continue as the Prime Minister himself in concert with the Finance Minister and the RBI has been monitoring the liquidity situation on day-to-day basis,” Mr Sinha was quoted in an agency report.

Citing similar opinion, Mr Allen Pereira, Chairman and Managing Director, Bank of Maharashtra, said that the change in portfolio of Mr Chidambaram would send a strong signal as far as security of the nation was concerned.

“Reform agenda would continue as usual since such decisions are taken collectively by the Union Cabinet. I do not see any negative impact on the confidence of the banking and financial sectorwith this development,” Mr Pereira said.

The FICCI President, Mr Rajeev Chandrasekhar, expressed the need for a dynamic leadership within the country.

On the political front, the opposition party demanded the withdrawal of the UPA Government for not being able to contain terrorism.