Five challenges for Modi's new Indian government

By Rajesh Kumar Singh and Rafael Nam NEW DELHI (Reuters) - A landslide election victory for Narendra Modi's Bharatiya Janata Party (BJP) has created euphoria in India's financial markets, driving shares to life-time highs and the rupee to its strongest level against the dollar in 11 months. After a decade in opposition, the BJP has promised to repair an economy growing at its weakest rate since the 1980s and tackle stubbornly high inflation. However, the most urgent challenges facing the government, from a large budget deficit to concerns that the El Nino could devastate agricultural output, have no easy solutions. DELIVERING A BUDGET THAT LIMITS THE DEFICIT Modi's government will face its first credibility test with markets when it delivers a budget by July that will need to convince investors that India can realistically contain its fiscal deficit. Read More http://ift.tt/1lIgkQo