Bank of Japan should not dismiss any policy options in combating risks to the economy from the European crisis. India’s long-term growth story remains credible even as the weakening global and European outlook pose immediate risks to exports, fund flows and sentiment. India’s inflation has probably been held up by rising wages, infrastructure bottlenecks, supply-demand imbalances and the rupee’s drop. The central bank also previously signaled that government spending is adding to inflationary pressure. The nation projects record borrowing of 5.69 trillion rupees ($102 billion) to plug a targeted budget shortfall of 5.1 percent of GDP in the year that began April 1.