Q. How do you balance attracting foreign investment with the interests of the Left parties and of the common man?

Chidambaram: It is not easy because of the current state of politics. The large number of regional parties, in a coalition or supporting a coalition, have necessarily to defend their interests. I think one must show a great deal of empathy for the political process that we are working with today. This is a new and a very difficult process.

Q. We need to bring structural reforms in social sectors if inclusive growth is to be a reality.

Chidambaram: Many of these issues cannot be addressed by the Central Government. Many of them have to be addressed at the state level and the sub-state level. To ask the Central Government to take responsibility to address these is asking it to do the impossible. Therefore, we must ask ourselves the question, what is the quality of people we are electing at sub-state and state levels and not only look at Parliament and the Government of India. There is so much to be done at the state and the sub-state levels.

Q. Do we need to take a fresh look at Central, state and concurrent list of subjects which were drawn 60 years back to ensure accelerated and inclusive growth?

Chidambaram: In politics, there are two contrary pulls today. One section believes that since states are neglecting their responsibilities, the Centre must take over areas like primary education and primary healthcare. The other view is that the Centre has no business in these areas and should shed its responsibilities in favour of the states. I think this debate has not reached a final conclusion. Over the past decade, the debate seems to be swinging in favour of the Centre playing a more active role. I don't know though how the Centre can manage all these responsibilities.

Q. What we are concerned about is majority or minority view should not suppress the other view. Our perception is that the tail is wagging the dog. How can industry help you in this?

Chidambaram: Well, certainly industry can help if it stops complaining about the little tweaking of a tax rate here or a tax rate there. Industry is doing well, so is the services sector. I offer my congratulations. But when the government turns its attention to neglected sectors, industry must willingly share that burden. Industry must play a role in macro economic stability. You can't only look at balance sheets. The latest figures show inflation rates for primary foods and fuel have come down while they have gone up for manufacturing. Please don't allow core inflation to be entrenched.

Q. GDP growth is 9 per cent, it could be 15 per cent also, if we have good governance and a bureaucracy that is answerable.

Chidambaram: I think it is unfair to paint the whole bureaucracy with the same brush. Bureaucracy is like a horse. If you know how to ride your horse, you can get things done or you will be taken for a ride. Today, the individual in society is far more empowered that ever before with provisions like the Right to Information Act. You should use these to place a check on the government.