India rejects credit agency caution of economy downgrade The government on Wednesday rejected any chance of the Indian economy being downgraded as warned by the rating agency Standard and Poor (S&P). Speaking to the media onboard the Prime Minister’s aircraft enroute St. Petersburg, Russia, Dr Arvind Mayaram, Secretary, Department of Economic Affairs said that India has taken sufficient measures to stabilize its economy and there is no chance of its being downgraded. He said the Finance Minister P. Chidambaram has made a commitment that the fiscal deficit will be contained at 4.8 per cent and current account deficit at 3.7 percent of the GDPand India will do so He added that economic growth will start picking up in the 3rd and 4th quarter with 30 billion dollar projects approved by the cabinet committee on investment. With a good monsoon season and an increase of over 9 percent sown area in the irrigation sector, growth prospects are good. He added that 9 billion dollar foreign investment has taken place in the first quarter as against 5 billion dollars in the same period last year. The S&P had on Tuesday said that there are 33 percent chances of India’s economy being downgraded. At present India’s rating is BBB and further downgrading will reduce India’s status to junk. India along with other emerging market economies will voice its concern over the unconventional monetary policies adopted by the advanced economies resulting in capital outflow from the emerging economies.In his opening remarks, Dr Mayaram said that India is going to emphasize at the G20 that monetary policy decisions taken by the member countries are calibrated and predictable. He further said that India will also raise the issue of protectionist policies of certain countries which is affecting labour movement among different countries.
Posted on: Thu, 05 Sep 2013 12:20:36 +0000
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