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Who Chidambaram blames for the economic mess?

 Who Chidambaram blames for the economic mess?
As economic mess unfolds with the rupee plunging to historic lows, economic growth rates getting worse, Nifty hitting a 1-year low and rating agencies threatening a downgrade, Finance Minister Chidambaram is attributing the economic mess to a host of reasons.

The first and obvious reason the Finance Minister has often stated in the past is about the external environment, particularly difficult economic conditions around the world.

However, data from the European world has been encouraging and so also from the US. India is also a domestic consumption story, more then anything else and is relatively insulated. We can't blame the external environment for elevated inflation, policy paralysis, high interest rates and deteriorating investment climate in the country.

Chidambaram has also not spared his predecessor while highlighting reasons for the present economic mess.

The Economic Times in a front-page story said that the Finance Minister appeared to blame his predecessor Pranab Mukherjee (currently the President of India) for the present problems. "There are not just external factors, there are also domestic factors. One of the domestic factors is that we allowed fiscal deficit to be breached and we allowed current account deficit to swell because of certain decisions that we took during the period 2009 to 2011," the FM said in the Rajya Sabha.

Chidambaram has also blamed the opposition for the present mess, saying that the reforms were held up as opposition blocked the Bills in parliament.

And while replying in the Rajya Sabha to the Finance Minister he also seemed piqued as the government had to run for clearance from the Supreme Court for iron ore and coal related issues.

In other words, Chidambaram has found plenty of reasons for the current economic mess. A closer scrutiny would reveal that he may partially be justified. But, he has been the Finance Minister for the last 13 months and things have only gotten worse in India, while the global environment has improved. It's time we stop blaming and move on.

Read more about: chidambaram dollar currency
Story first published: Wednesday, August 28, 2013, 9:53 [IST]
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