Highlights of P Chidambaram's reign as the finance minister

P Chidambaram won’t be contesting the Lok Sabha election and this is likely to be his last innings as finance minister. There have been several highlights during his three terms in the post—the dream budget of 1997-98, bold tax and capital market reforms, and successfully avoiding a ratings downgrade more recently. Here’s a look at the Chidambaram years in North Block.




UPA2: August 2012- Now

PC began his third stint when economy was under threat. Growth had slowed and inflation was rising, the fiscal deficit was out of control. Meanwhile, ratings agencies were threatening a downgrade. He embarked on several policy changes. FDI in retail was allowed, fuel pricing was partially freed and the Cabinet Committee on Investment was set up.

The fiscal deficit was reined in & CAD & rupee depreciation managed. Now, economy has stabilised, inflation is lower and confidence in India has returned while FIIs are investing in the markets again and indices are at a record high. But as he prepares for exit, credit for rupee recovery is going to RBI governor Raghuram Rajan while the market euphoria is said to be over hopes that BJP will come to power at the Centre.