NEW DELHI (AP) -- India's finance minister says the fundamentals of Asia's third-largest economy have strengthened since the country faced a potential crisis last year.
Palaniappan Chidambaram told reporters that the worrisome current account deficit had narrowed to about $35 billion in the fiscal year that ended Monday from $60 billion the previous year. He said the fiscal deficit dropped to 4.6 percent of gross domestic product and foreign exchange reserves grew to $300 billion.
He said the improvements had lessened the threat of a downgrade from investor rating agencies.
The Indian rupee strengthened last week to an 8-month high after spiraling to a lifetime low of more than 68 per dollar in August.
Still, India is struggling to revive its previous strong economic growth rate of previous years.
Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.