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India faces fuel subsidy challenge

13 June 2014 Last updated at 04:17 BST

As India's new government gets to work, the BBC has been looking at the big economic challenges it faces.

One of those is to get the country's finances in order.

For example, right now India spends more than $20bn (£12bn) on making fuel cheaper for its people.

But as Yogita Limaye reports, reducing these subsidies is a very sensitive issue.

So how is the new government going to tackle it?

Watch more reports on Asia Business Report's website.

Watch: India Business Report