Downturn? No, economy is much better off, says FinMin

India's real economy is much better off this year than it was in 2012/13, a senior finance ministry official said on Tuesday in a talk with financial professionals to explain the government's response to the Indian rupee's drop to record lows.

Economic Affairs Secretary Arvind Mayaram said India

had brought its fiscal deficit down more sharply and quickly than any other country, but managing the current account deficit was more complicated because the government had less control of it.

However, he said the government was determined not to allow the current account deficit for 2013/14 go beyond a ‘red line’ at 3.7 per cent of gross domestic product, and added that it may surprise sceptics on that measure.