Politicians appeal to key groups of voters like farmers or the poor by keeping prices low and ignoring theft, prompting scepticism about whether states will agree to any package that forces tariff hikes.
Although the RBI is not statutorily independent from the government, Rajan, like previous RBI Governors, has long valued his independence.
The government is aiming for an 8-10 per cent annual economic growth.
The rapid deceleration in prices has ignited a debate in New Delhi whether Asia's third-largest economy is heading towards deflation.
Across India, decades of mismanagement and political meddling have left utilities selling electricity below cost and turning a blind eye to rampant theft.
The government has given up plans to reconvene a parliament session to secure approval for a common goods and services tax.
Many officials had been talking of taking the baton of global growth.
Fifteen months after taking power, Modi's credibility as an economic manager is on the line.
Robust growth in indirect tax receipts points to a nascent revival in manufacturing sector.
Indebted developers are cutting staff as they slow work on existing projects and postpone new ones until they clear a backlog of 700,000 unsold homes
Modi's party also wants to regulate property markets and tie investor money to specific projects to stop developers diverting cash elsewhere.
India's main hubs are bursting at the seams.
Local businesses are fretting over reform setbacks.
Opposition politicians on Wednesday stalled a last minute attempt by Prime Minister Narendra Modi's government to pass the Goods and Service Tax bill.
GST is the biggest revenue shake-up since independence
SpiceJet is in talks with aircraft makers for a jet deal.
Under new Chairman Ajay Singh, the airline has cut routes - its capacity is down a third since last year - and costs.
The airline was forced to ground its fleet in December after running out of cash.
Modi placed a $12.6 billion bet in this year's budget on road building
India's $100 billion push into solar energy over the next decade will be driven by foreign players as uncompetitive local manufacturers fall by the wayside, no longer protected by government restrictions on the sector.
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