MARGARET THATCHER said that you cannot buck the market. But if the experience of India’s government over the last few months is anything to go by, you can charm the pants off it. My e-mail inbox is overflowing with missives from the finance ministry that promise a bounce in the economy, assert a step change in investor sentiment, deny there is a bad debt problem in the banking system and promise a stable tax regime.

That love bomb is a huge change compared with 2011 and the first half of 2012, when the ministry nearly prompted a financial crisis by imposing retrospective taxes on foreign companies, terrifying equity investors with confusing rules and missing its borrowing forecasts. Everything changed in September when the government, led by a new finance minister, Palaniappan Chidambaram (pictured), proposed a mini-package of reforms. Since then he has been a one man source of animal spirits—expressing optimism even while conditions on the ground remain somewhat depressed.

Read Here – The Economist