The global rating agency, Standard and Poor (S&P), in its report on the Indian economic impasse, said Prime Minister Manmohan Singh “often appears to have limited ability to influence his Cabinet colleagues and proceed with the liberalisation policy he favours ...It would be ironic if a government under the economist, who spurred much of the liberalisation of India's economy and helped unleash such gains, were to preside over their potential erosion.”
It noted that setbacks to or reversals in India's path to a more liberal economy “could hurt its long-term growth prospects and, therefore, its credit quality.”
Evidently, even while not pointing to the specific measures of liberalisation, the agency appears to be referring to the government's flip-flop on opening up foreign direct investment to multi-brand retail and the more recent reports on the UPA's ally Trinamool Congress blocking pension reforms.
Among the BRIC nations (Brazil, Russia, India and China), the S&P noted, the other three enjoyed a higher rating or outlook than India.
Incidentally, the report comes at a time when views are expressed as to whether the ‘I' in BRIC should be replaced with Indonesia on account of its comparatively robust growth.
The only bright side of the report is to allay fears of India facing a 1991 type of crisis, saying the situation is much better now.
Keywords: Standard and Poor's rating, S&P, India credit rating, UPA government, Sonia Gandhi, Manmohan Singh
Economics is not independent of the human conditions in the region of the earth where its laws are sought to be applied. Its laws unlike laws of science sre not universally applicable. Ignorance or deliberate overlooking of this fact is the reason why the western economists and their followers in India are not able to correctly understand India's economic imperatives.
Standard and poor have no business in judging the prime minister of India. For all that is said, they should contest elections rather than call themselves 'rating agencies'. ( But what they are saying is correct , unfortunately)
How on earth, the things like FDI in retail, FDI in Pension Fund etc., is linked with current economic crisis in India? Utter non-sense... Agreed Indian Economy is not in good shape and thanks to our stupd GoI, which is hardly doing anything apart from increasing Petrol rates inspite of it's depreciating value.
Our politicians may rubbish the S&P report for obvious reasons, but the report has hit the nail on the head by saying that the very economist who presided over the reforms in india two decades back is now presiding and overseeing (or shall we say sleeping) its downfall. what an irony? congrats mr manmohan singh..
It's very unfortunate that GoI under the presence of a PM who is an economist is facing a downgrade threat from the S&P agency. A PM who should have taken the steps to curb the rising fuel prices, inflation is doing just his part of listening to the Madamji and ignoring the clamours of 1.2 - 1 people.
Our Prime Minister, inspite of being one of the greatest economist, is unable to stop this crashing cards of India Economy. He should come out of grip of Vote Politics, and should take strong stand on these issues. While contemplating these issues, he should only think that he is representative of India not of UPA Presidint (Sorry to be rude).
The mockery of the current Congress regime, its foreign leader who holds the leadership without a free and fair election, not democratically elected and a weak PM who has no respect, dignity and support of the people and Indian Members.
The current UPA regime is the worst regime since independence from the British, lack of will to pursue against and eliminate corruption, mudslinging foreign policy, collaboration in undemocratic and crimes against humanity activities and voted at the UNHRC against human rights, uphold International Law and Rule of Law.
India is in the brink of disarray unless honest Indian and highly talented leaders like Narendra Modi and Selvi Jeyalalithaa lead the nation for prosperity , by ending political corruption and violence.
all the confidence and positivism generated in first decade of the new millenium have been just wasted away by UPA - 2.
Tough times for Indians. This situation has been created by incompetent and corrupt ministers headed by a more incompetent PM.
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