Ever since he took charge last October, finance minister P. Chidamabram has excelled in talking up the mood in the economy. He has taken this to another level in his ongoing roadshows to improve sentiment of foreign investors in the Indian economy.
In Hong Kong on Tuesday he promised a dream budget: not only will it avoid any increase in direct tax rates, at the same time the government will be able to protect spending on social sector programmes. In Singapore, he reiterated the message. Investors are loving it.
However, in Singapore he also had a warning; an investment bank advisory quotes him as saying that the biggest threat to reforms was an unstable government in 2014.
The implicit message is that the FM believes that 2014 is likely to throw up a very fragmented verdict. Clearly, policy uncertainty will be par for the course.