Meeting fiscal deficit target will be 'tough': Rajan

NEW DELHI Mon Dec 17, 2012 3:18pm IST

Raghuram Rajan speaks during a news conference on the World Economy Outlook in Singapore September 14, 2006. REUTERS/Tim Chong/Files

Raghuram Rajan speaks during a news conference on the World Economy Outlook in Singapore September 14, 2006.

Credit: Reuters/Tim Chong/Files

Related Topics

NEW DELHI (Reuters) - India's economy will show signs of improvement in the second half of the year, but achieving the full year fiscal deficit target of 5.3 percent of gross domestic product will remain a tough ask, Chief Economic Advisor to the Finance Ministry Raghuram Rajan said on Monday.

In its mid-year economic review, the government said uncertainty over stake sales in state-run companies and soaring subsidies pose a challenge to reducing the fiscal deficit, which has put in peril the country's investment grade credit rating.

Addressing a news conference, Rajan also said inflationary pressures were expected to ease in the second half of the year, while industrial output was expected to improve. He expects GDP growth in the second half of the year to be around 6 percent.

(Reporting by Arup Roychoudhury; Editing by Anand Basu)

FILED UNDER:

Fast-tracking Projects

REUTERS SHOWCASE

Oil Prices

Oil Prices

Oil resumes slide after brief rebound on short-covering.  Full Article 

Space Programme

Space Programme

ISRO tests its heaviest space launch vehicle, eyes global market   Full Article 

Coal India Strike

Coal India Strike

Coal India workers threaten five-day strike, stokes output worries  Full Article 

Gold Discount

Gold Discount

Dealers offer gold discount for first time in five months  Full Article 

Lakhvi Granted Bail

Lakhvi Granted Bail

Pakistan court bails man accused of masterminding Mumbai attack  Full Article 

GST Bill

GST Bill

Cabinet clears bill for nationwide goods and services tax.  Full Article 

Aviation Sector

Aviation Sector

Breakingviews: SpiceJet rescue is no fix for India aviation woes.  Full Article 

Global Economy

Global Economy

Fed confident on U.S. growth, opens door wider to rate hike.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage