Growth concerns on China, which has already seen the yuan getting devalued twice in August, have rattled global financial markets, including that of India.
Rajan said expecting the government to provide all solutions wasn't right.
Lower revenue collection puts upward pressure on government borrowing, ensuring that it deviates from the glided path of debt reduction
'The expectation was that Modi would become even bolder in his approach, and after only four months into his second term, we are starting to see evidence of this.'
There was hope in some quarters that the interim Budget would boost sentiment and lay the groundwork for kick-starting the investment cycle, while staying on a path of fiscal consolidation.
The spurt in online sales during the festival season is expected.
It won't be an easy ride for the markets, reckon experts, considering the multiple state elections in 2018 and general elections next year.
Does away with much of auction process in this market and reinvestment checks
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It also painted a grim possibility of any major gains in the rupee during the current fiscal saying that the continuing global volatility, and domestic political uncertainty ahead of the 2014 hustings will limit chances of any significant appreciation apart from further impact growth.
'Clearly, the warming of ties can be a 'win-win' for India and China,' says Ambassador M K Bhadrakumar.
The new Budget would do well to fill up the gaps and pave a strong way forward to ensure that the optimism surrounding it is not short-lived.
The S&P BSE Sensex ended 80 points up at 23,789 while the Nifty50 closed at 7,235, up 24 points.
The broader NSE Nifty closed below the 10,600 mark by plunging 98.15 points, or 0.84 per cent, to 11,582.35 after shuttling between 11,567.40 and 11,751.80.
Nobutaka Kitajima, chief investment officer -- equity, LIC Nomura Mutual Fund, tells Business Standard the reaction to the Fed's statements has been overdone and the current downturn has punished certain stocks much more than their inherent economic worth and business potential.
'As the growth momentum reverses benefiting from re-monetisation, it will be accompanied by a rise in inflation.'
There is uncertainty in most investors' minds as to whether China is transitioning to a new growth model or simply collapsing.
Outbound deal count in the current calendar year fell to 100 from 154 in 2012.
The NDA government was initially reticent about fleshing out its economic strategy for the future. But now that it has taken enough bold initiatives on the economic front it must have the confidence to tell us more about its approach going forward, says Abheek Barua.
Rajan said investments should return after initial investor worries over Brexit.
Overall market benchmark Sensex is headed for its worst performance in four years with a decline of 1,650 points
The yellow metal is a safe bet in the long run.
TCS, Infosys and others are banking on automation to protect their turf in the US, but building a successful revenue model around it may prove difficult
A big hit to China's growth or to Europe's financial system could certainly tip the global economy.
FM says government policies aim to contain inflation, spur growth.
Sharp fall in capital goods production and manufacturing activity also dented sentiments.
'The Reserve Bank's independence has remained a work in progress, an enduring challenge that the nation has been grappling with on an ongoing basis,' says RBI Deputy Governor Dr Viral Acharya.
Whatever the critics may say, the numbers suggest that India continues to be a favourite destination for foreign investors.
While retail sales at dealerships have suffered the full impact of demonetisation, the growth in wholesale volumes comes as dealers had relatively lower inventory after Diwali in October.
With inflation figures expected to be well within RBI's target, there may be room for further rate cut.
Benchmark share indices gained for the fifth straight session on Thursday led by index heavyweight Reliance Industries.
Because of India's weak fiscal position, the plethora of debt-burdened infrastructure companies and the poor asset quality of public sector banks, economic growth in 2015-16 may be limited to about six per cent, say Shankar Acharya.
However, the budget arithmetic is slightly optimistic.
2016 is difficult to predict, and this uncertainty will drive volatility in global markets.
While information technology companies will benefit, firms with high foreign borrowings or heavy dependence on imports will be hurt.
India has some ability to influence what the world order will look like, but it needs to make structural changes to the ministries of external affairs and commerce, and evolve formal coordination mechanisms with the ministries of finance and home, says Nitin Pai
If the RBI governor's logic holds, the rupee is far from being extremely overvalued.
IMF attributes the slower growth rate to supply-side bottlenecks.
A comprehensive technical framework needed, from which a more convincing policy could be demonstrated
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And with prices low, the equilibrium real exchange rate will also be low, that is to say depreciated.
Data used for the graph and cited elsewhere in the column were obtained from various publications of the RBI.
