The fact that sentiments are moving the rupee more than anything else is reflected from the wider fluctuation in NEER as compared to REER since FY12. REER reflects the inflation differential between India and the trading partners, while NEER mirrors BoP situation and sentiments. While CAD has widened to 4.8% of GDP in FY13 from 4.2% in FY12, the GDP growth has slid from 9.3% in FY11 to 6.2% in FY12 and 5% in FY13. Although finance minister P Chidambaram has drawn a red line for CAD at $70 billion or 3.7% of GDP for FY14, analysts doubt the number given the rupee fall, sluggish exports and rising import bill. Most brokerages have downgraded Indias GDP forecast with some expecting it even lower than 5% during FY14. Unless macro fundamentals improve, growth picks up and CAD is restrained, the currency is likely to remain volatile. S&P expects no quick fix ahead of the polls as the political calendar tends to delay the reform process. But India is still not on the brink of a BoP crisis like it was in 1991, when it had to resort to IMF funding, S&P added.