Millennium Post

More reforms coming; no big threat of S&P credit rating downgrade, says FM

Promising more reforms initiatives in the next two years, Indian finance minister P Chidambaram said there was no serious threat of downgrade of the country’s credit rating by Standard and Poor’s. ‘I don’t think there is a serious threat of downgrade’, he said when asked about his reaction to the recent threat of downgrade of India’s credit rating to junk grade in 24 months by global agency S&P if more reforms measures were not implemented.

The minister, who was addressing a press conference on the sidelines of the IMF-World Bank annual meetings, said that there would be lot of action on the reforms front in the next 24 months, the timeline provided by the S&P.

The rating agency had in its report on Wednesday said that there was one-in-three likelihood of rating downgrade for India if ‘the country’s economic growth prospects dim, its external position deteriorates, its potential climate worsens, or fiscal reforms slow.’

The minister said, ‘[we will] convince them that India does not deserve a downgrade and in terms of growth and growth potential...India is way above most countries of the world.’


India is aiming to get back on a higher growth trajectory of 8 per cent as it would help in generating more jobs and promoting inclusive growth, Planning Commission Deputy Chairman Montek Singh Ahluwalia saidon Thursday.  ‘We are trying to get back to 8 per cent growth and that is good for the world. In my view the central focus should be on getting growth back’, he said during a panel discussion on policy options for job and growth organised on the sidelines of IMF-World Bank annual meetings.
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