Government revises subsidy cap target upwards to 2.4% of GDP
After a kickstart to government's reform process, Prime Minister Manmohan Singh warned that growth could fall to 5 per cent on policy logjam. However, the government faces a volume of opposition with key ally Mamata Banerjee demanding roll back of FDI in multi-brand retail. Meanwhile, the Finance Ministry has revised its subsidy cap upwards to 2.4 per cent of the GDP for the fiscal year.
