But this money is perhaps in cash bonds

Visiting Paris, between the G8 Finance of Saint-Petersburg and Lyons stage, India's Minister of economy and finance denounced the consequences of the excessive price of oil to consumers at the time where the Russia, the Presidency of the G8, proposed to introduce the concept of security of opportunities in the long term for the producers. In an interview with the "Echos", Palaniappan Chidambaram, a heavy weight of the Government of India as to be regarded as its number one "bis", refuses to be alarmed of the excitement of markets and the Indian stock market. He argues the importance of the reforms carried out and the influx, for five months, major investors. And he was confident in the ability of the India to finance additional investment and reforms to bring the growth of the largest democracy in the world of 8 to 10.

In Paris, you have discussed with Thierry Breton international imbalances and the volatility of capital markets. Are you worried about global growth and that of the India

Yes, volatility concerns us. It is the increase in raw materials, interest rates, to concerns about inflation which seem a little exaggerated if judged by the 2 of the European Union or the 2.2 of the United States. I have not the ability to calm markets. But I can draw attention to the good health of the Indian economy: our growth was 8, our foreign currency reserves are enormous, our inflation, 4.6, is very moderate for a developing country and the capital markets are well regulated. There is no reason the volatility affects us too much.

The Indian stock market nervousness but tends to prove that foreign investments are in part speculative...

We do not consider foreign investment in the portfolio as of pure speculation. They mobilize individual savings, pension funds and investment funds. Money must be invested in one way or another, somewhere in the world. Could not lock him in a bag and let him sleep. Over the last twelve or thirteen years, the funds have invested 45 billion in India. During the last four weeks of volatility on the markets, 2 billion of shares were sold. But this money is perhaps, in cash, bonds... We are relatively confident, given our rate of growth.

A growth rate of 8 or even 10 is tenable in the long term

We can maintain a growth of 8 by continuing the current policy. But, to achieve a rate of 10, we need more reforms and investment further.

However, foreign direct investment remain insufficient...

They are on the rise, but we know he does never weigh as much as domestic investment. Keep in mind the Indian reality: savings weighs 28 of GDP, compared to 2 for foreign direct investment. That said, these 2 are important. Provide us innovative technologies, new products, more capital, new management methods and access to new markets. So the two.

The French presence in India is not, according to you, to what represents the France economy. The overcautiousness of investors, and not only French, does not to the unwieldiness of the Indian administration

There are also people who complain of the difficulty of doing business in France... Remains that, if this criticism of the India was founded a few years ago, this is no longer the case. I can make you a long list of companies that have invested in India in the last five months. That would make us Nokia, Alcatel, Motorola, AXA, IBM if an obstacle course waiting

Is it not progress to make in the great distribution for example

We we are already open in the distribution sector. And we intend to change our policy at our pace. Investors to adapt. This is what has made the German Metro, retail professional. Only multi-brand shops are controlled. We need to go further in this area, as well as in the banking sector. But why always focus on the door is closed and do not see the door open

You have certainly addressed the Mittal-Arcelor with Thierry Breton folder, do you think that a compromise is possible

It is a matter for the shareholders of a Luxembourg company and a Dutch company. We understand that the French Government, as a shareholder, or part, which is not our case. But we are, of course, very proud as an entrepreneur born in India has become the number one global steel. We wish him good luck. It also prepares to invest heavily in India, to open a steel plant which will produce 10 million tonnes per year.

You say require investment but reforms also. How finance them account taken of your public deficit but your current accounts deficits also

For a developing country, a current-account deficit is necessary and useful, because we need to attract foreign capital. And ours is perfectly manageable. The public deficit is under control. We have reduced it and we will succeed in our goal, back to 3 in March 2009.

How to choose between priorities as important as the fight against poverty, agricultural reform, the modernization of the infrastructure

This is a priority in India. If we keep our public deficit to 3 of GDP, the Government will have enough money to finance the necessary reforms. Our experience of the past three years shows: tax revenue increase of 20 per year, on average. Control the deficit, that is the key.

The pace of reforms is considered disappointing by some...

It is false. Just look at all what has been achieved. The harmonization of VAT is the most important tax reform in the country seventy years ago. We also converge the taxation of products and services to a single taxation. And we have significantly reduced trade barriers. Outside tax issues, the telecommunications sector was opened. Within two years, each village will be connected to the network. Finally, the reform of the railways could become a real case: it has contributed to 2 billion in additional revenues, while the system was threatened with bankruptcy six years ago!

St. Petersburg, where you were invited by the G8, soaring oil prices and energy security have been at the centre of the debates. What is your analysis of the situation

We are very concerned by the excessive price of energy. For developing countries, it is the theft of a vital part of their growth. According to the IMF, when the barrel increases by $ 10, developing countries lose on average 0.8 point of growth. But what can we do Consumers have no choice but to pay the price. To seek new sources of oil supplies. We are literally at the mercy of the producing countries.

Must be less or better consume

Please do not ask developing countries consume less. Each Indian consumes the equivalent of 300 kilograms of oil per year. Europe is at 4,000, 7,000 by the United States... On the other hand, we need to aim more efficient consumption. However, this efficiency has a price: it implies that we replace our production infrastructure, transport of energy... This is the path we must follow.