World | India
From economic crisis to war on terror
Former finance minister Palaniappan Chidambaram, who led efforts to fend off the global financial crisis, now faces an even stiffer test -rescuing India's government from the wreckage of the Mumbai attacks.
- Reuters
- Published: 00:34 December 1, 2008
New Delhi: Former finance minister Palaniappan Chidambaram, who led efforts to fend off the global financial crisis, now faces an even stiffer test -rescuing India's government from the wreckage of the Mumbai attacks.
The Harvard-educated Chidambaram was named yesterday as the new home minister after the much-derided incumbent resigned following a year of militant violence which culminated in the three-day rampage through India's financial and cultural heart.
With criticism mounting over his government's failure to prevent the bombings and gun attacks, Prime Minister Manmohan Singh accepted Shivraj Patil's resignation.
Chidambaram's four-year tenure as finance minister saw growth averaging about 9 per cent, but high borrowing costs following a spurt in inflation and the impact of the global economic crisis are expected to trim it this fiscal year to near 7 per cent.
Analysts welcomed his appointment to head the interior ministry, which overseas security along India's borders, the fight against Maoist guerrillas and separatist insurgents in many states.
"He should have been appointed long time back. I think he is very hard working and diligent," said Saumitra Chaudhuri, a member of Singh's Economic Advisory Council.
During his stint as junior home minister in a centre-left coalition in the 1990s, he modernised outdated security agencies and forged a stronger policy towards domestic insurgents.
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