Falling oil prices to pull India's budget out of deficit trap

New Delhi

FALLING oil prices have been a major windfall for India: Just weeks ago it faced the prospects of failing to meet fiscal deficit targets, but can now expect a budget that not only hits its targets, but also provides extra cash to support reform.

The coming budget for fiscal 2015/16 (April-March), which will be unveiled on Feb 28, is widely seen as a test of Prime Minister Narendra Modi's ability to lead economic reform.