Former Union Finance Minister P Chidambaram, a harsh critic of the policies of the National Democratic Alliance was all praise for Union Minister for Divestment Arun Shourie.

While congratulating the minister for the Maruti Udyog divestment, which has benefited retail investors, Chidambaram cautioned that "one swallow does not, however, make a summer as there was no movement thereafter as far as divestment of other public sector undertakings were concerned.

• The Maruti Saga: Complete Coverage

Speaking to rediff.com in Bangalore on Saturday, on the sidelines of a seminar on the 'Changing face of Banking', organised by the Greater Mysore Chamber of Industry, Chidambaram said: "I wish the government moves fast on the divestment route. But a tired government in a pre-election year may not go fast though there are some energetic ministers like Shourie pushing the divestment agenda.

"I think he can achieve better results on the divestment front before the general elections next year provided the government fully backs him."

Asked whether the government's dual strategy to divest through strategic and retail route was in the right direction, Chidambaram said there was no preferred route as each decision was to be taken on merit.

"I think the government must examine a slew of options and choose the one that serves the interests of the country and the stakeholders. If the strategic route is found to be better than the retail market, it should go ahead.

"In some cases, the government may find a strategic partner rather than divest to retail investors. But if some PSUs find favor with the retail market and benefit the public, the government should be flexible on that score," Chidambaram stated.

Commenting on the fluctuations in the currency markets, the former minister said corporate India had no reason to complain on a raising rupee as it was quite natural in a free exchange market.

"The grumbling by the industry or companies is unjustified. When there is a free exchange rate, all must prepare for the appreciation or depreciation of the rupee. They should not assume that a depreciating rupee is good and an appreciating rupee is bad. The export sector must prepare to live with both the situations.

"The mindset has to change. When the reform process began in the early nineties, a mindset of the first 40 years in post-independent India underwent a rapid change. Since then, there is need for a new mindset in the post-reform process," Chidambaram asserted.

Citing the example of Japan whose yen appreciated by 140 points recently from 90 points year-on-year, Chidambaram pointed out that there was no impact on its exports, which continue to dominate the world markets.

"Whether rupee appreciates or depreciates vis-a-vis the US dollar or other currencies, Indian firms should be able to compete globally with quality products, innovation, and competitive pricing. Only those who produce staple or shoddy goods grumble on the fluctuations in the currency market," Chidambaram affirmed.

On issues relate to World Trade Organisation, the former finance minister said the government should be prepared to negotiate from a position of strength to win as many concessions as possible.

• India and the WTO: News and Issues

"Though the government may win some friends and lose some in the bargain, it should ensure that the interests of the country are protected at any cost. I think the government is better prepared now than before for the next round of WTO discussions," Chidambaram added.