The Indian government is reportedly considering the partial reform of fertilizer subsidies in an effort to reign back its fiscal deficit. According to The Times of India, the proposal is thought to be relatively low-risk, as many farmers in India still use urea to fertilize their crops.

Government officials have stated they do not expect the change to reduce India's subsidy burden significantly - rather, the aim is to prevent it from increasing. India's announcement that it will try to cap its subsidies to state-run fuel retailers can be seen in the same light.

But India has also announced a raft of new subsidies for renewable energy production in the past few months.

The Jawarharlal Nehru National Solar Mission, launched in early January, aims to generate 20,000 megawatts (MW) of energy by 2020, which according to online newspaper VentureBeat will be achieved with "major subsidies". The total cost is estimated to be US$ 19 billion, with the Indian government stating that it will put up 90 per cent of the money needed to make plants operational in diesel-dependent states and 30 per cent in others.

VentureBeat has also reported on India's intention to spend US$ 200 billion on a Smart Grid by 2015, and an incentive package for wind energy that will put aside US$ 81 million to reduce the cost of wind-generated energy for consumers. Other wind subsidies include tax breaks and accelerated depreciation.

India's fiscal deficit is currently 6.7 per cent of GDP, and the economy is expected to have grown 7.2 per cent this quarter.