India will struggle to meet deficit target: Pranab

India will struggle to meet a fiscal deficit target of 4.6% for the fiscal year that ends in March, Finance Minister Pranab Mukherjee said on Wednesday, calling it a "major challenge".

He, however, expressed hope that the Reserve Bank would take appropriate steps in its forthcoming monetary policy review on January 24 to keep the growth momentum.
"India needs to make one trillion dollar investment in 12th Plan," he said.
Mukherjee added that inflation will drop to between 6% and 7% by the end of March. He sees FY12 growth at 7.5% or less.
The improvement in index of industrial production (IIP) numbers and inflation situation, he added, "indicates some improvement in the overall economic parameters in second half for 2011-12.
India's headline inflation was a 7.47% in December, a two-year low as food price pressure eased dramatically. ."The rupee fall has halted the better management of inflation," the FM pointed out.
The rupee scaled a new two-month high on Wednesday, boosted by strong dollar inflows as global funds seek higher returns in the Asia's third largest economy, while oil buying capped the gains.
According to Mukherjee, the rupee is continue to fall until the European crisis dies down. He said the crisis has fueled volatility in capital flows.
"We will have to find ways to address slippages in Budget 2012," he admitted.
Mukherjee blamed lack of consensus for failure of the government to implement some of the key reforms in 2011.
However, he said, India