It takes two to tango -- the two in this case being Manmohan Singh and P Chidambaram.

That just about sums up the reactions of corporate India to the appointment of Chidambaram to the finance minister's post.

The reactions range from jubilation and sighs of relief to sober assessments that the Chidambaram-Manmohan Singh duo will take the Indian economy to new heights.

Most also believe that the prime minister and the finance minister will be able to withstand the pulls and pressures of a coalition government.

In the capital, apex chambers of commerce welcomed Chidambaram's return to the finance ministry. N Srinivasan, director general-designate at the Confederation of Indian Industry, said that Chidambarm was the best choice for the finance minister's post.

By teaming up with Manmohan Singh who is a reformer by conviction, Chidambaram will speed up the growth process in India. It is a great combination, he added.

Federation of Indian Chambers of Commerce and Industry president Y K Modi said: "Chidambaram is a progressive, forward looking minister who will make a good combination with Manmohan Singh. His increased thrust on agriculture and manufacturing sectors will ensure the steady growth of the economy."

In Mumbai, leading luminaries hailed the appointment of the new finance minister. Housing Development Finance Corporation chairman Deepak Parekh points out that the reforms process was initiated by the Congress and accelerated by the BJP-led National Democratic government.

"There will not be a U turn by the new government. The common minimum programme has talked about increasing the flow of FII and FDI," Parekh said.

The HDFC chairman also makes the point that Chidambaram is a professional who is familiar with the financial sector. "He knows issues like taxation and corporate law. This intimate knowledge will help him do justice to the job."

Adi Godrej, chairman of the Godrej group, broadly concurs. The combination of Singh as prime minister and Chidambaram as finance minister bodes extremely well for the Indian economy.

"Both of them have an unimpeachable reputation for financial as well as intellectual integrity. The combination of this leadership will be welcomed not only by Indian business and industry, but also by international investors," he said. 

According to Godrej, the new finance minister's main tasks are to gradually bring down the fiscal deficit, broaden the tax base and push the introduction of an all-encompassing VAT regime.

KV Kamath, managing director and CEO, ICICI Bank, says that in the prime minister and finance minister "we have two extremely proven hands" to lead the country.

"We are lucky to have a prime minister who knows the financial sector very well and a finance minister who has already proved his worth in the relevant field. They will carry on the momentum of the Indian economy. I am sure that the common minimum programme of the new government will take note of the reality on the ground and will not sacrifice progress. Reforms will have a human face now," Kamath said.

AM Naik, chairman, Larsen & Toubro, felt that Chidambaram's 1997 budget was a right step in improving Indian industry's competitiveness. "I expect that under his stewardship, the infrastructure sector will be given fresh impetus since it is vital for the growth of the manufacturing sector," he said.

Dena Bank chairman Anil Kumar Khandelwal said both Singh and Chidambaram are on the same wavelength on the economic agenda. "The ideological congruence between the two will be able to withstand the pulls and pressures of coalition politics," he points out.

Bajaj Auto chairman Rahul Bajaj said: "Keeping in mind the support of the Left parties, I recognise and find acceptable that companies like ONGC and GAIL will not be privatised. However, I hope, that even these companies will, if required, raise capital from the market either by fresh capital or by partial divestment of the existing capital. Having even limited public shareholding makes the management more accountable, injecting a spring in their step! It is also important to disinvest loss making PSUs, to which this government and the left should not be averse."