Mixed reaction to India's budget

India announces its fiscal 2007-08 budget as stock markets in the country continue the nosedive they began on February 27, ending down 6% in two trading days.

IndiaÆs finance minister Chidambaram, had an unusual situation to contend with this year while framing the budget, the countryÆs fiscal policies announced annually on February 28. He has a large fiscal surplus, in contrast to earlier years when balancing the fiscal deficit was a primary driver of the budget.

The Indian economy is doing well on the back of 7%-8% year-on-year GDP growth and foreign inflows, both portfolio and strategic. Stock markets are booming and it has become a tightrope...

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