Inflation
Food price inflation staying in double digit territory for 18 months and fuel price inflation spilling over into core inflation demands coordinated fiscal and policy measures. If policy measures are brunched up towards end of the fiscal, economists predict a hardlanding scenario that will derail growth projections
Greek Crisis
If risk of sovereign defaults spreads to larger economies in Euro zone, reversal of capital inflows will slow Indian recovery. Policy makers in India will then have to fast-track structural reforms to accelerate domestic demand if growth projections of 8.5% have to be met
Monsoon
Disruptions in temporal and spatial distribution of monsoon rains for the second straight year are likely to push food inflation to record high. Projection of 8.5% growth in current fiscal depends on a normal monsoon and a 4% growth