India will struggle to meet a fiscal deficit target of 4.6% for the fiscal year that ends in March, Finance Minister Pranab Mukherjee said on Wednesday, calling it a "major challenge".
Mukherjee added that inflation will drop to between 6% and 7% by the end of March.
India's headline inflation was a 7.47% in December, a two-year low as food price pressure eased dramatically.