India sees deficit challenge due to subsidies, stake sales: Raghuram Rajan

India said uncertainty over stake sales in state-run companies and soaring subsidies pose a challenge to reducing the fiscal deficit, which is the widest among big emerging economies and has put in peril the country's investment grade credit rating. Chief economic adviser to the Indian government, Raghuram Rajan said that he was optimistic that growth would gain momentum in the near future. Global rating agencies and investors are putting pressure on New Delhi to shore up its public finances, which have been hit by subdued tax revenue and higher spending on subsidies.