India will probably miss a deficit target set yesterday by finance minister Palaniappan Chidambaram as his budget plan to narrow the nation’s fiscal gap is based on “highly questionable” tax and spending assumptions, BNP Paribas SA said.
By the end of this month, Indian Finance Minister Palaniappan Chidambaram will have completed a tour of the world’s biggest financial centers as he seeks investors for Asia’s No. 3 economy. He has no time to lose.
Indian stock-index futures swung between gains and losses after the biggest rise in the rupee in 27 years and falling oil prompted a rally in benchmark indexes. The government releases quarterly economic growth data today.
India unexpectedly left interest rates unchanged as the fastest inflation among the biggest emerging markets narrows scope to bolster an economy struggling with trade and budget deficits and Europe’s debt turmoil.
India’s rupee fell to a one-week low on concern reports casting doubt on the strength of the global recovery will damp capital inflows, making the currency more vulnerable to a record current-account deficit.