P.Chidambaram, The Finance Minster of India, got very ambitious as he had a target of holding the government’s fiscal deficit for till this year end 2013 at 5.3 percent of the whole GDP, even as the skeptical private economists did forecast a deficit which was closer to a 6 percent of the GDP.

 “All BSE Sensex 30 stocks were trading in green, top gainers on the Sensex were HDFC at 796.45 up 2.67 per cent, HDFC Bank at 679.50 up 2.59 per cent, Jindal Steel at 378.90 up 1.72 per cent, Bajaj Auto at 1,853.80 up 1.71 per cent and Sterlite Ind at 100 up 1.57 per cent. Most active shares on BSE were Federal Bank, Jet Airways, SpiceJet, United Spirits and Jindal Saw”, as quoted by IBN Live.

The previous month, India was warned by Standard & Poor to face a one-third chance of a credit rating downgrade over the next 2 years, even though a series of reform steps were launched and had improved the country’s prospects to a minimal extent. Fitch also has a negative outlook on India.

The Indian government has faced a huge series of revenue-raising setback. Therefore they are grappling to have a widening of the fiscal deficit which seems threatening to weaken India’s credit standing and also has a possibility of start a downgrade to salvage status.