Mr FM, Please...

With the economy in the doldrums and a faltering monsoon to boot, captains of India Inc are unanimous in their view on what P Chidambaram, the new finance minister, needs to tackle head-on. He should slash wasteful government spending, take tough decisions to rein in fiscal deficit that threatens to not just crowd out private investments, but, more ominously, if left unchecked, push India’s credit rating to junk status — leaving the economy susceptible to a sudden flight of capital, say chairmen & chief executives of leading companies that Business Standard spoke to. Clearing tax waters, muddied by the now infamous retrospective tax amendment or Vodafone tax, and bringing clarity to the much-maligned GAAR also top in India Inc’s wish-list. They want the FM to push through contentious measures like allowing foreign insurers’ bigger stake in their Indian ventures, and addressing sticky issues like investments in infrastructure and manufacturing(Click on graphic)