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February 27, 2013 6:05 PM EST

India's economy will grow 6.1-6.7 percent in the financial year that starts in April, the government forecast in a report on Wednesday, a day before Finance Minister P. Chidambaram unveils a budget that is expected to keep a lid on spending.

Reuters/Amit Dave/Files
A worker welds iron rods at the construction site of a commercial complex in Ahmedabad November 29, 2012.

The annual report on challenges facing the economy was prepared by Raghuram Rajan, the former chief economist to the International Monetary Fund (IMF) who became the top adviser in the finance ministry last year.

(Photo: Reuters/Amit Dave/Files / )
A worker welds iron rods at the construction site of a commercial complex in Ahmedabad November 29, 2012.
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