Chidambaram has completed one year as the Finance Minister of India under UPA II, taking over from Pranab Mukherjee last year. To be fair, Chidambaram did not inherit an economy that was great, but in cretain areas like growth, he has just not been able to stem the slide. Read in pics the FM's hits and misses.
Growth rates are teetering
The GDP growth for the third quarter of FY 2013 came in at a decade low of 4.7% and in the fourth quarter was just marginally up at 4.85%. Growth has not taken-off in the last 1 year that Chidambaram has been the Finance Minister and foreign investment firms are constantly revising India's GDP growth rates lower.
Rupee looks increasingly vulnerable
The rupee hit a record low of 61.21 in early July and the FM had to watch helplessly as weak economic fundamentals pushed the rupee to abysmally low levels. In fact, government and RBI measures thus far have proved futile in preventing a slide on the currency.
Current Account Deficit a big worry
The current account deficit hit a record high of 6.7% of the GDP for the third quarter of 2013 and has fallen since then to 3.6% for the March quarter. Bad policies in the past maybe one reason why the CAD is at such high record levels. One year for the FM maybe too short to solve the CAD problem.
FM has driven ahead with reform process
We no longer hear the words "policy paralysis". Chidambaram must be given credit for a whole lot of reform measures including ability to cut subsidies, opening up FDI in certain sectors and liberalising investment for foreign companies.
Fiscal deficit now under control
Chidambaram must be given credit for bringing down fiscal deficit for the 2012-13 to 4.9 percent of Gross Domestic Product, as against estimates of 5.2 per cent. Analysts argue that his ability to cut expendituire has also pushed investment lower and hence growth. But, his ability to cut down the deficit has kept foreign rating agencies at bay.