As it’s known to us, there are many garments factories in India due to the cheaper labor, you can see many garment accessories such as hang tag, seal tags are exported to India suppliers in large quantity. MARGARET THATCHER said that you cannot buck the market. But if the experience of India’s government over the last few months is anything to go by, you can charm the pants off it. My e-mail inbox is overflowing with missives from the finance ministry that promise a bounce in the economy, assert a step change in investor sentiment, deny there is a bad debt problem in the banking system and promise a stable tax regime.

To a degree this has worked. One boss of a bank I interviewed just before Christmas says Mr Chidambaram is doing “an amazing job”. India’s stock market has risen (helped by the latest round of quantitative easing in America and by the rally across Asian markets). Debt spreads have shrunk to less worrying levels. Although local investors have remained circumspect, foreign funds have poured into India, especially garment makers and some seal tags makes. It would be surprising if this financial pick-me-up did not assist the real economy.

Words are important, after all a recovery is partly about engendering optimism. And perhaps the finance ministry is saving up a range of actions ahead of the budget in February. But in the four months since the reform package was announced there has been too much talk and too little action. Right now, when global markets are upbeat, and this would also affect the seal tags and garments investors, that doesn’t matter. But India today is more dependent on the grace of outside capital flows than ever. The latest current account deficit figures for the second quarter of the fiscal year came in at a queasy 5.4% of GDP. If the mood globally were to change—thanks, say, to another lurch down in the eurozone—talk will not be enough.