India's Deficit Threatens 'Junk' Rating
Faced with a slowdown in growth, an exodus of foreign investors, a huge corporate accounting scandal at a top , and a make-or-break election, India's government has been struggling to find ways to rev up the economy. First came an $8 billion stimulus package in December. Then, on Jan. 2, as the country digested the news that exports had fallen for the first time in nearly 15 years, the central bank cut interest rates and allowed state governments to borrow another $6 billion. And last week, Prime Minister Manmohan Singh's coalition government slashed taxes.
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