India's headline fiscal deficit target for the next fiscal year is a comfort for the Reserve Bank of India Governor Raghuram Rajan said on Saturday, amid hopes of a policy rate cut.
Finance Minister Arun Jaitley committed to fiscal discipline in his Feb. 29 budget, lowering the deficit target further to 3.5 percent of gross domestic product in the fiscal year that starts next month, surprising investors.
Rajan told reporters the central bank's board gave substantial compliments to the finance minister for budget and fiscal discipline. He said the country was broadly moving in the direction of boosting growth.