Indian bosses greet new finance chief

Jaswant Singh (centre) being sworn in on Monday

India's business and financial community has welcomed the appointment of ex-soldier and veteran politician Jaswant Singh as the country's finance minister.

"There's an expectation of the economy moving faster under Mr Singh," Fayeza Feroza at Pranav Securities told the BBC's World Business Report.

Jaswant Singh has engaged the world and followed a clear strategy and direction in building international relations and we expect the same clarity and direction in economic policy making

Ashok Soota
president CII

"However he's still an untested animal and markets are on the wait and watch mode."

Mr Singh swapped his post as foreign minister with incumbent finance minister Yashwant Sinha in a major Cabinet reshuffle by Prime Minster Atal Behari Vajpayee.

"Jaswant Singh's appointment would bring a fresh approach to the economic reforms, especially, after his track record as the foreign minister during the volatile India-Pakistan relations," said Prakash Lala, a dealer at HSBC Securities.

"His strategic approach would give a boost to reforms in the areas of privatisation."

The Bombay Stock Exchange ended flat at 3,285, after adding 44 points on Monday following the reshuffle.

India's Business Standard newspaper said Mr Singh's appointment was greeted with cautious optimism by 44 chief executives it contacted in a snap poll.

Mr Singh previously held the post in Mr Vajpayee's 13-day-long government during May 1996.

Corporate result

The country's leading business lobby group, the Confederation of Indian Industry (CII), welcomed the second stint of 64-year-old Mr Singh as finance minister.

"Jaswant Singh has engaged the world and followed a clear strategy and direction in building international relations and we expect the same clarity and direction in economic policy making," said CII president Ashok Soota.

Mr Sinha's four-year-tenure as finance minister was troubled by a scandal surrounding investments by the country's largest mutual fund, the Unit Trust of India, which led to calls for his resignation last year.

His Budget in February was also blamed by members of the ruling Bharatiya Janata Party (BJP) Hindu nationalist party for a number of recent humiliating election defeats.

"We hope that the new finance minister will be able to kick-start the economic reforms which were lying dormant for quite some time," said Vijay Kalantri, president of the All India Association of Industries.