The immaculate instrumentalist

Ajith Vijay Kumar Managing an economy as big as ours is in all sense identical to being a concertmaster. Just like a master music conductor who fine-tunes the pitch, tempo, rhythm to create that “very perfect” harmony, Palaniappan Chidambaram, a master financial strategist, has been playing a key role in synchronising India’s aspirations with the realities of today’s market driven world. Chidambaram was born in a business family on 16th September, 1945, in Sivaganga, Tamil Nadu. A scion of the influential MA Chidambaram group, he was a bright student from the start- after completing BA LLB from Madras University, he pursued MBA at Harvard Business School. But unlike many of his peers who chose to stay back in US, Chidambaram returned to his homeland and started his practice as a topnotch lawyer. His political acumen came to the fore when he became active with the Youth Congress. It was not long before that Rajiv Gandhi identified this young lawyer’s capabilities and propelled him to the national arena. Under the able guidance of his mentors Rajiv Gandhi and G Moopnar, Chidambaram won the Shivganga constituency in the 1984 Parliamentary elections and there was no looking back since then as he continues to represent this constituency in the Lok Sabha in the subsequent general elections held in 1989, 1991, 1996, 1998 and 2004. With his induction into the Rajiv Gandhi government in 1985 as a Deputy Minister in the Ministry of Commerce, Chidambaram had truly arrived on the national political scene. However, he acquired his true colours as a master economist when in 1991 he was appointed as commerce minister in the P V Narasimha Rao led Congress government. Along with Dr Manmohan Singh (then Finance Minister) and Montek Singh Alhuwalia, Chidambaram formed the ‘dream team” that resurrected economy after the dark days in early nineties. India’s transition from a Soviet-style centralised economy into today’s liberalised; free market era has largely been credited to this troika of India’s finest brains. His most notable contribution during this era was the new EXIM Policy that radically changed the dynamics of our import driven economy. However, Chidambaram truly faced the arc lights when as a Tamil Manila Congress MP he was chosen to be the Finance Minister in the United Front government. His first Budget presented in July 1996 was largely considered a disappointment, mainly because his image as champion reformer from the “dream team” made people expect too much from him. But one notable policy change was the introduction of minimum alternative tax, which stands the same way till today. The Dream Budget The 1997 budget has been universally accepted as one of the best Budgets ever, Chidambaram single-handedly changed the way India Inc did business. He slashed the maximum rate of income tax to 30 percent, reduced the corporate tax to 35 percent, abolished dividend tax of shareholders, and allowed foreign institutional investors (FIIs), non-resident Indians to invest up to 30 percent in Indian companies. Overnight he became a darling of India Inc and the middle class. Not surprisingly stock markets reacted in a way they had seldom before, Dallal Street had snuffed the coming of an economic boom. Although the UF government didn’t last long, Chidambaram had in no uncertain terms staked claim to the Manmohan Singh legacy of economic excellence and prudence of the highest order. That’s why when Dr Manmohan Singh took over as the Prime Minister in 2004, Chidambaram was the natural choice to head the Ministry of Finance. The other side He might be better known as a financial mastermind and a lawyer of excellence but Chidambaram’s personality has different dimensions to it. This lover of literature, especially Tamil literature, has also been very active as a social activist. As a Trustee of the Rajiv Gandhi Foundation (RGF), he has strived to bring about a positive change in the world we live in. He has been especially active with issues related to child welfare. Under his guidance Project Interact was launched by the RGF in May 1993 to lend a helping hand to the children who were victims of terrorism. This scheme ensured that the cost of school fees, uniforms, books and maintenance of each child was taken care of till up to the senior secondary level. His intent was to ensure that at least materially; such children should not miss their parents, taken away from them for no fault of theirs. The present innings As the Finance Minister in the UPA government Chidambaram has been consciously trying to move away from his well advertised image of being a darling of the business class. His recent actions have been aimed at pleasing the “Aam Admi” ---the plank on which Congress rode to power even if it meant displeasing India Inc, albeit temporarily. The appreciation of rupee against the dollar and the hike in interest rates were given a tactical nod so as to keep inflation down. After all for the Aam Admi, it’s the price of “onions” that matters the most. And on the eve of his 53rd birthday he might be a pleased man, the latest figures (as on 14th September) indicate that inflation is at its 17-month low level, while GDP forecasts are hitting through the roof at around 9 percent. These figures can make any Finance Minister proud but wait a minute…to win his heart you need something more…chocolates, yes chocolates! He is a self confessed chocoholic, who also devours pizzas and potato chips. The man, who delicately balances our finances, ensuring that we get to savour all that our booming economy has to offer; undoubtedly deserves credit for keeping India`s economy on the expressway to world dominance.