He is interested in seeing the stock market recover, but equally keen to ensure that no scam upsets the applecart, as happened with earlier rallies.

In an interview to Business Standard, he argued that the Indian economy was at the "edge of criticality" and headed for "explosive growth", though he could not forecast when exactly this criticality would be reached.

He added that he would continue to focus on putting more money in people's pockets so as to encourage the spending habit.

With this perspective, he ruled out any steps to cut either the food or fertiliser subsidy.

The minister said he was getting ready with his mid-year report to Parliament, and was happy with direct tax collections as well as customs duty revenue, but concerned about excise figures.

But expenditure management was working well, with the new cash management system. And he pointed out that the speedier issue of tax refunds was putting more money in the hands of the people.

He expressed confidence about achieving the zero revenue deficit objective in another two years, and argued that tax revenue in relation to GDP could be raised very substantially in order to get to this goal.

The minister rejected international criticism of India's rapidly growing foreign exchange reserves, arguing that money would be required when growth accelerated. "There will be a huge demand then for foreign exchange to meet the import needs of the manufacturing and other sectors. This foreign exchange will come handy then," he said.

Besides which, India had long experience of foreign exchange shortage. "No economic management is purely economic management. It is political management," he said.

According to him, the country's buoyant reserves were a statement that India's economy has moved into one of surplus and plenty from that of want and shortage.

As far as the value of the rupee was concerned, Singh pointed out that the country's exports have not fallen. The other side to a higher rupee was that imports were easier.

Jaswant Singh was critical of the banks and accused them of "chronic timidity" in their lending operations, preferring to seek safer options. He accepted the riposte that the government's borrowing programme was providing bankers with an easy alternative, but felt that banks should be doing more.

And he seemed focused on solutions to the problems faced by both cooperative banks and development banks, but did not spell out any specific steps.