ANALYSTS' VIEW: India finmin shifts to home min, PM takes over

NEW DELHI (Reuters) - Indian Finance Minister Palaniappan Chidambaram will be India's new home minister and Prime Minister Manmohan Singh will take over the finance portfolio for now, the government said on Sunday.

The move comes after Home Minister Shivraj Patil resigned following the attacks in India's financial capital, Mumbai, which left nearly 200 people dead.

COMMENTARY:

A. PRASANNA, ANALYST, ICICI SECURITIES, MUMBAI:

"I don't know whether it will be such a big change because of late anyway the prime minister has been taking a hands-on approach to economy ever since the G20 summit.

"Whatever the steps the government has been taking in response to the global crisis, it has been a combination of finance ministry, Planning Commission and the Prime Minister's Office.

"Anyway, at this point of time the government's energy is going to be focused on internal security. That's the priority. If you are going to look at a new anti-terror law, new federal investigative agency, those are big policy issues. In some respect one can assume that the economic policies will take a backseat.

"Whatever has happened over the last few days is pretty serious. The first priority has to be that.

"I think the market will take a more big picture view and it is a positive development only. Nobody needs to second guess the PM's credentials, in his ability to run the ministry."

ARVIND SAMPATH, HEAD OF BOND TRADING, STANDARD CHARTERED BANK, MUMBAI:

"The market continues to anticipate rate changes especially after China and some sort of loss of business confidence. We are expecting the 10-year bond yield to trade in a 7.07-7.12 range."

MAHESH RANGARAJAN, POLITICAL ANALYST, NEW DELHI:

"Manmohan Singh is not only the architect of reforms but seen as someone who can who can listen. There are serious concerns on the economy and the big challenge is going to be rebuilding confidence of investors, and there is a greater confidence in Singh because of his midas touch."

ABHEEK BARUA, CHIEF ECONOMIST, HDFC BANK, NEW DELHI:

"I think the primary concern at the policy level remains a slowing economy. I think the finance ministry and the associated agencies like the Planning Commission were in the process of putting a blueprint for a revival.

"My sense is whoever takes over the finance ministry will make sure that the process goes on seamlessly and there is continuity in the way policy is carried out. If it goes to the PMO (it) is guaranteed. Even if someone else comes as the finance minister, I am sure the agenda is to ensure continuity and ensure that the market does not get spooked in anyway."