Business » Economy

Updated: June 12, 2012 15:21 IST

S&P: India risks losing investment grade rating

Special Correspondent
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In this file photo tourists drive past the S&P headquarters in New York. The rating agency on Monday threatened to downgrade India's credit rating to ‘speculative’.
In this file photo tourists drive past the S&P headquarters in New York. The rating agency on Monday threatened to downgrade India's credit rating to ‘speculative’.

Cites division of roles between "powerful" Sonia and "unelected" Manmohan for impasse

In an unprecedented broadside at the UPA-II government's style of functioning, global rating agency Standard and Poor's (S&P) on Monday pointed to the operational roles of Congress president Sonia Gandhi and “unelected” Manmohan Singh as Prime Minister for the current economic impasse and threatened to downgrade India's sovereign credit rating to ‘speculative' from the lowest notch of ‘investment' grade.

In its report, ‘Will India be the first BRIC fallen angel,' S&P said: “Slowing GDP growth and political roadblocks to economic policy-making could put India at the risk of losing its investment grade rating” and pointed out that the crux of the current political problem in going forward with economic liberalisation was the nature of leadership within the Central government and not “obstreperous” allies or an “unhelpful” Opposition.

Having scaled down India's rating outlook to ‘negative' from ‘stable' in April this year, the S&P report, authored by its credit analyst Joydeep Mukerji, highlighted that the Congress was divided on economic policies, and there was substantial opposition to any serious liberalisation. It pointed to the division of roles between a politically “powerful” Congress president and an “appointed” Prime Minister as having “weakened the framework for making policy, in our view.”

“Moreover, paramount political power rests with the leader of the Congress, Sonia Gandhi, who holds no Cabinet position, while the government is led by an unelected Prime Minister Manmohan Singh, who lacks a political base of his own,” it said.

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It is amusing to read some of the comments who are criticizing S&P on its past rating
transgressions instead of debating their message. It is open knowledge that in the UPA govt
the real power lies with Sonia Gandhi who holds no cabinet position and the PM Singh is just
puppet. Dr. Singh knows well what needs to happen to revive India's growth but he cannot
do anything. India and its people are the loser in the process.
Those who criticize the economic liberalization initiated by Dr. Singh should know that not all
readers are stupid to believe their drivel. I grew up in the eighties and have seen all the
jobless youth of the neighborhood hanging out in "adda" since they have job opportunity
other than govt jobs that were few and far between. Yes I have seen poverty in the "middle"
class & it's corrosive effect on humanity. Now in the same neighborhoods there are hardly
any "adda" because youth have many more avenues to make a living, people are too busy.

from:  Jitendra Dutta
Posted on: Jun 13, 2012 at 07:55 IST

Well any agency has right to criticize but that should be factually presented .Now they can say that decision making is delayed in India but it is not right on their part to make a accusation pin pointing solely to the PMO or any particular party . At the end of the day India is a combination of states and every state contributes to India's GDP calculation . Now considering the federal structure of India the onus should fall on all the state and central government. The agency has no right to pinpoint and score a brownie point .Agency should point out the problems and give possible solution subject to their findings . It is acting as an opposition in the parliament . This is solely politicizing the whole issue.

from:  Aditya Kothari
Posted on: Jun 12, 2012 at 18:13 IST

Take a look a the ratings of countries like Spain and Italy. Both these countries are rated higher than India by S & P.

from:  Perfetti Van
Posted on: Jun 12, 2012 at 17:47 IST

Perhaps it is high time to move to presidential form of government with directly elected president. It has several advantages such as professional management of the country, save us from politics of coalition Dharma/ blackmailing.

from:  Bhaskara Rao G
Posted on: Jun 12, 2012 at 17:18 IST

Pranab Mukerji doesn't see anything wrong with India's economy management,but Joydeep Mukerji sees many things wrong. The suffering millions of this country will not know who is right and who is wrong. But there is one thing they know and that is that they continue to suffer and nobody is bothered about it?

from:  K.Vijayakumar
Posted on: Jun 12, 2012 at 16:45 IST

We as a nation are definitely a lot of gullibles, but the limits of it are being tested by MMS government ministers' utterances like those of Salman Khurshid, Kapil Sibal, Sharad Pawar, Narayanaswamy, Vayalar Ravi. Looks like today , the biggest enemy of the nation is the 'state'run by such a group of people .

Posted on: Jun 12, 2012 at 16:40 IST

Downgrading indian economy will eihter result in fear of investments or will result in pulling out their money. Conditions leading to 1991 period. This government full of scams is doing nothing for the poor, instead filling their bank balances in outside safe havens. The country needs a change and the people of this country will show them in lok sabha elections in 2014 .

from:  karan
Posted on: Jun 12, 2012 at 15:39 IST

Take a look a the ratings of countries like Spain and Italy. Both these countries are rated higher than India by S & P. On the whole, the S & P report is a superficial, ideologically skewed perspective on the economy which should not be given undue importance.

from:  Pradeep
Posted on: Jun 12, 2012 at 15:08 IST

I don't understand what is the basis that HINDU moderates comments??
Even a valid comment with come critical remarks is not showed.

from:  Venkat
Posted on: Jun 12, 2012 at 14:42 IST

The authorities of this country need to realise that it's time for meaningful and non-superficial action.
At present we have been reduced to a nation where lakhs of crores of public money has been already gifted to 'temples','babas', 'statues' and 'IPL', where the media (which actually made these 'babas' that they are) cries foul when someone talks of regulations, where the few bold honest men who try to expose the truth are killed in absence of protection, and where a few others fighting against corruption and black money are harassed and discouraged by the agencies....."where the mind is not without fear, and the head is not held high..." ...let alone the economic parameters, which are unfortunately in such bad state inspite of having great finance experts in the present government.

from:  Aniruddha
Posted on: Jun 12, 2012 at 13:32 IST

S&P adverse credit rating just goes to show the deep economic abyss we
have stared our country in to despite the robustness and vibrancy
which was the hallmark of our economy since the reforms began and
sadly this time around the demise of our economy is presided by the
man who is hailed as the architect and father of reform process in
india . Time is really running out fast and UPA II should not wait for
the next term post 2014 general elections to get its act together . It
should bite the bullet now and start the key reforms in retail ,
pension , subsidies , probity in public life etc. and at the same time
do everything necessary to keep its growth story intact so as to keep
the investors interested in investing in India which I still believe
has enough economic potential to emerge as economic powerhouse . what
is essentially required is no nonsense approach and deft political
management and PM should stay away from controversies and focus on an
area in which he is simply the best.

from:  Vaibhav Kohli
Posted on: Jun 12, 2012 at 12:10 IST

With all regards to s & p and its effort to voice a concern, which is heard yet soundproof for our 543 odd policy makers.We can dedicate 48 hours on 35 lac planning commission washroom,but can't pass a bill (could be infrastructure, oil, mining, industrial output)which can heal the wound of paralysis.Populism in such a shape is scary and it's a thought provoking instance that what we want to grow, the private sector (responsible for 4 successive year 9% growth) or infusing money in populist measures by keeping 2014 elections in mind.
Inclusive growth has suffered (sorry Mr. Mohan Das Karam Chand Gandhi),its been taken as growth for discussions on AMbedkar cartoons & Team Anna. Middle class will watch and sleep.

from:  Onkar Nath
Posted on: Jun 12, 2012 at 11:57 IST

It is high time these so called rating agencies stops meddling with the
economic affairs of every country and more so big Asian country like India. Any reforms which is not going to benefit the largesse of the country is not at all required. All capitalists would like to see that the Insurance, Pensionreforms all go thro in one go so that easy capital is available to them squander. All these so called reforms have made rich people ultra rich and the poor becoming more poorer. what has happened to the insurance companies in US and also the pension fund managers in US after 2008. They are an eye opener for every country to be more cautious.

from:  k.gopu
Posted on: Jun 12, 2012 at 11:40 IST

The relevance of rating-down-gradation and the reasoning given as bi-polar power
politics should not be taken at its face value. S&P's ratings are done from the
perspective of ultra-liberalization which is not relevant to Indian scenario. Perhaps the
problem lies in the obsession for certain populist measures (which includes certain
welfare schemes too) that drain the public coffers and the slow or near paralysis of
policy implementation. Yet, it goes beyond this and includes the pervading issues of
corruption at all levels, arm-twisting tactics of coalition partners and so on. Just for the
convenience of "stopping the buck," one should not buy this reasoning. The present
Government has some brightest minds in the decision making level and once these
minds work in unison, the unsettling issues can be settled and a vibrant economy's
rebirth is possible.

from:  David Muthukumar S
Posted on: Jun 12, 2012 at 11:15 IST

The people of India have lost faith in the Congress Party led government at the centre because of the party leadership's steep corruption. So whatever the government want to do, people suspect every move it makes. Some of the MMS government ministers' utterances like those of Salman Khurshid, Kapil Sibal, Sharad Pawar, Narayanaswamy, Vayalar Ravi are so pathetic the people are angry that they are being taken for granted. The government is engaged daily in fighting one or the other corruption charges. The way the government dealt with the former army chief was deplorable and it proved to be ungrateful to his services to the nation. If India is to survive as a nation, we must get rid of the foreigner who is calling the shots. What interests will she have about this nation and its people? She is a fair weather bird who has come to India to make hay when the sun shines. The corrupt congress is using her fair skin and looks to cheat the people and get their votes to retain power.

from:  arumugam
Posted on: Jun 12, 2012 at 11:17 IST

In rural areas of Bihar and Bengal at least no growth is observed as outcome of socalled success stories as most of the people are not getting square meals at least in 2012 as I have personally seen

from:  atis
Posted on: Jun 12, 2012 at 11:16 IST

Look to what dismay has this government brought the country that its
elected government is being openly criticized for its inefficieny by the
outsiders and the People of India looks upon them to bring some change..
Had we been a little careful and aggressive, the day would not have
come. Its never too late, we should wake up and rather than they taking
some decisions to shut up people ! we should take some decisions .. or
the days is not far when China will be bailing out Indian economy !

from:  Shubham
Posted on: Jun 12, 2012 at 10:58 IST

Recipe for another set of scams. First donn't act and then in the name of reform and investor sentiments create strange policies like "First come First Serve" for scams like 2G, shoddy and high priced equipments like in CG, favoring corporates (KG), etc. Could well be collusion of our policy makers to justify hasty and murky decision-making behind the veil of slowdown in growth and also to divert attention of people from anti-corruption movement and uprising.
That growth is disappearing, is what even a rickshaw-puller on the streets knows.

from:  Rahul
Posted on: Jun 12, 2012 at 10:26 IST

trillion dollor mistake in calculation by S&P while down grading US. italy give BBB+ rating while india BBB-. really feel total doubt about all rating agency. i dont think they know ground reality, sitting on computer and fixed perameters is not worth. THE HINDU GROUP must publish track record of rating agency forcast and after effect. after down grade of US , US stock market up by 30% in 6 month and even dollor is strong 2006 they down grade india story all of known. its complete case of political blackmailing for ecnomical purpose. no one invest anywhere looking at rating agency only driving force is returns. this rating agency must understand world is not fool and you are not geniuse.EVEN crisil give rating to company like shri ashtvinayak!!!!!!!!

from:  sandeepshah
Posted on: Jun 12, 2012 at 10:23 IST

Who is S&P to grade India? Is it that when we dance according to their tunes - to cut down subsidies on agriculture, people friendly policies, to issue tax holidays to the greedy corporates, to throw open all our markets, allow them to loot our natural resources and what not. They do not have any moral right to accuse our opposition in order to support liberalisation. The fault lies with us - as correctly said by the non-ministerial extra constitutional authority held by Sonia and the unelected Manmohan - to fall at their feet at a drop of the hat and shamefully accepting their arm-twisting policies. All in the name of liberalisatio, privatisation and globalisation which has only created more divides than bridges.

from:  M.S.Chagla
Posted on: Jun 12, 2012 at 09:51 IST

Rating agencies- the prophets of new world order. Some create myths (eg. BRIC) and some threaten to burst it. Nothing much has changed though in the life of common man.

from:  Arghya Saha
Posted on: Jun 12, 2012 at 09:34 IST

I think the grading being "speculative" is certainly a huge setback
for Indian economy. The investors will now be either not invest that
much as earlier they used to do or they will pull out their money from
India. As a result, it will hamper the growth that India desperately
needs to keep itself in the competition with BRIC countries. Main
problem lies certainly with current government where the head has no
such powers to overrule any decision, which he feels isn't correct.
Also the allies being so demanding and difficult to control, it only
poses one additional problem to the growth. This is a similar
situation where in a joint venture, two companies have 50:50 stake and
neither is allowed to take a decision unless the other agrees with it
too. That way China is more likely to grow becuase of the combination
of democracy and dictatorship as they have one single person who can
bring about a change or a rule. Go Mr. Manmohan, India doesn't need you.

from:  chandan Mishra
Posted on: Jun 12, 2012 at 09:32 IST

Oh great! We saw what happened to banks and financial institutions just after they gave them an AAA+ rating! They collapsed! S&P are playing a political game to force India to open its doors further. We should be least pressured to act in any specific way. That said, it is time we got our own act together.

from:  B S Kumar
Posted on: Jun 12, 2012 at 09:32 IST

Honorable Mr. Manmohan Singh is one the brilliant persons in the field of
Finance. I know that being a PM of India, he is indulge in many
activities but i guess country's Financial position is one thing that
can should give highest priority and should not be ignored that any
cost. So dear our PM, please do something about this crisis else it will
have adverse effect later on, then these politicians will keep on
pointing fingers on each others party.

from:  Uma
Posted on: Jun 12, 2012 at 09:28 IST

Hope, Mr. Manmohan Singh who has always kept his ear directed to US, rather than his own country men will listen this and change his policy of Puppet Administration. We need some strong moves dear PM. You be unelected or not, you have a reputation among the people of India. You want to get elected, just do your duties fine and lift the country from the situation, you and your colleagues have put it in.

from:  Bibin Babu
Posted on: Jun 12, 2012 at 09:28 IST

What is obvious is being openly said by a member of a premier
institution. Will our countrymen here listen?

from:  Ramaswamy.A
Posted on: Jun 12, 2012 at 09:25 IST

I am against these agencies lecturing us but their latest observation about the division of power shows to what extent Manmohan Singh has sunk.

from:  Ramana Murthy
Posted on: Jun 12, 2012 at 09:13 IST

Nothing much can be expected from UPA even after this report, because, the Congress party heading a fragile coalition, which has been in denial mode for every preventable adversity that is afflicting the nation in the UPA 2 dispensation especially, has a variety of excuses ranging from 'coalition compulsions to 'foreign hands' out to destabilise the Government. It is unfortunate that Dr.Singh who earned the distinction of being the architect of growth in his role as Finance Minister under the Prime Ministership of P.V. Narasimha Rao in 1991, has fallen from such an exalted position to this level in his role as the PM. What next? A bail out package from IMF with stringent prescriptions on labour reforms, financial sector reforms, drastic reduction in subsidies of all sorts ...! Let bleeding India watch, while the government of the day continues to misdirect its energies in committing more monumental blunders, from non-issues that have no relevance to the well being of the common man.

from:  Shekar
Posted on: Jun 12, 2012 at 09:09 IST

Now we are being told be an international rating agency that the government we elected is dysfunctional (as if we did not know it already). The Policy making hierarchy headed by Ms Gandhi is bereft of any ideas( new or old) and the executive is unable to put up a picture of clean (corruption free), united and sharp management savvy picture.

from:  mani Sandilya
Posted on: Jun 12, 2012 at 09:04 IST

What happens if S&P down grades India's financial rating? Its
stragegy is to use it as tool to pressurize liberalization process
all pervasive even in food and defence securities. Globalization already destroyed Indian moral and ethical values. S&P is an agency, not an authority to dictate terms to sovereign countries and nothing will happen. Let us take it as a boon in disguize.

from:  M.Manmadha Rao
Posted on: Jun 12, 2012 at 08:50 IST

While the analysis may be factual, the conclusion of Speculative Grade is too much. The political arrangement as described by S&P is existing since last eight years. Why it is pinching now? The answer seems to be that the global economic scenario has changed. This is the time to be decisive and initiate prompt measures. The existing political arrangement does not facilitate such decision making. However, do the UPA-II have any alternative? Who will replace Manmohan Singh, even when felt necessary? This for the Congress Head Soniya Gandi to decide. I don't think she is capable of making such a decision. Notwithstanding this, I think that fundamentals of Indian economy are still strong and speculative grade is an exaggeration.

from:  Pramod Patil
Posted on: Jun 12, 2012 at 08:15 IST

In a coalition form of government some differences are bound to
occur. The UPA has remain divided be it FDI in retail, hike of railway
fairs or rise in petrol prices. Its key ally TMC has stubbornly and
vociferously opposed very move. The government is headed by the same
person who was a key figure in liberalising and globalizing Indian
economy in 1993.With the GDP growth plummeting to 5.3 in JAN-Mar
quarter 2012 and registering the growth of 6.5 in the fiscal year
2011-12 is surely projecting a gloomy and pessimistic picture to the
global investors. In such a scenario further downgrading of India’s
rating by S&P could led us to Hindu rate of growth which he have
registered for decades from post liberalisation era to late 1970s.

from:  Gajendra Sahu
Posted on: Jun 12, 2012 at 07:20 IST

Every culture and religion has a destination, and India is reaching.
This subcontinent never was in glory, never is and never will be.

from:  kiran maddu
Posted on: Jun 12, 2012 at 07:04 IST

The negative rating of India by the S&P appears to be to
destabilise Indian economy as though we do not have a
stable central government to take care of the welfare of
the people apart from Dr MMS and Ms Sonia Gandhi.The
USA did not hesitate to strike a nuclear deal with this
government that is not in any way different from the one
of nuclear deal.Does S&P arrogate to itself more wisdom
and expertise than its own government at Pentagon?
Hopefully the business community will not be mislead by
such dubious ratings while coming forward to invest in

from:  G.Rajaram.
Posted on: Jun 12, 2012 at 06:45 IST

It is a shame that rating agencies like S&P determine the credibility
of a massive country like India. A country cannot work like a company
and the vice versa holds true. With free markets, Manmohan Singh or any other pro-liberal (towards market) economist knew that a nation will be subjected to judgement by these Wall Street folks and the repercussion had to be felt by the toiling middle class.
For no fault of theirs, except electing inept leaders, the large middle class will now pay the price of gamble played by major players based on signals received from such agencies like S&P. It is like holding somebody by their neck, laying out conditions and demanding that their terms be met or face the consequences. This is like dragging the whole country (with a sheer majority living in rural side and oblivious to the tactics of speculative cronies) to the tunes of
greedy capitalists! Like Communism, I see "greedy capitalism" as an ideology that is corrupting the soul! Peace!

from:  prasanna
Posted on: Jun 12, 2012 at 04:54 IST

Why should believe in S&P?. This is the same rating agency that gave top investment grade ratings to Lehmann, AIG and even Enron before their crash.

from:  Sam
Posted on: Jun 12, 2012 at 04:48 IST

Here we go again. An Agency that has no clue on what it is rating is at it again. Pointing just to domestic issues and turning a blind eye to the Price of the oil which accounts for a major chunk of the imports bill, global slow down and impending meltdown of much of the Europe - None of that matters. Only Policy paralysis matters.
"pointed to the division of roles between a politically “powerful” Congress president and an “appointed” Prime Minister as having “weakened the framework for making policy, in our view.” It took over 8 years for S&P to figure this out?

from:  Krishna Dammanna
Posted on: Jun 12, 2012 at 04:33 IST

S&P looks at one figure only. That figure is how much privatization of economy has been accomplished in India and how much commerce has been opened to foreign
direct investment. If the government of India does not toe the neo con economic line then the country's rating must be downgraded. S&P does not care about poor and hungry Indians. They must be pushed aside and left to die so that foreign direct investors can make their billions in India. That is the sad state of affairs in the new neo con west. Here in the USA the rich are pushing middle class out of the way by cutting social benefits, so the top 1% can accumulate more wealth which they say trickles down to their barbers, mechanics, yatch builders, and others who serve them.

from:  mohammad imran
Posted on: Jun 12, 2012 at 03:57 IST

S&P is saying nothing. new but political situation that is emerging now it will be easy for Manmohan Singh to initiate Reform process and it will happen bringing from GST & DTC in next parliament session. Dont worry situation is not as bad as it seems.

from:  Andy Robert
Posted on: Jun 12, 2012 at 03:55 IST

When are the people of India going to wake up to the crises the country is going through?We have been downgraded again by the international global rating agency.The flood of money is going out of the country.The GDP is going down every month.The Army is in disaray.The generals are behaving like our politicians.The Nexals are having the field day.The soldiers beat up their officers and get away with it.The whole world knows that India has a puppet Prime- minister.Sonia is seriosly ill and not capable to lead the party or the Government.The Congress will be compltetly wiped out in the next election.It is time to find a new Prime-minister and the President of the Congress Party.

from:  Jay Jolly
Posted on: Jun 12, 2012 at 03:18 IST

It is funny to see that S&P talk about power euqations in the government as if it has the necessary tools to analyze those equations. I know there are certain qualitative factors that influcence the credit rating of a coutry. But there alone don't make up a 100% weightage. I think this report should be taken with a pinch of salt. This is either Joydeep Mukherji's personal report or a paid report by MNC's to discredit the central govt for not doing their bidding (for not letting them go tax free). I am sure the educated middle class will see through this report.

from:  Vamsi Kotla
Posted on: Jun 12, 2012 at 03:12 IST

While subjecting our political elite to some tough questioning on the direction the nation is headed, we should take S&P's critique of Indian politics and policy with a fistful of salt. It is no surprise that this agency complains about the slow pace of "liberalisation", for it cares only about the financial returns on investment. It need not worry about the complexities of the decision-making process in a pluralistic democracy. And it has little interest in talking about the links between two decades of liberalisation, growing income inequity, worsening environmental degradation, further exclusion of certain sections of society and a slew of other problems facing the nation.

from:  Ninad
Posted on: Jun 12, 2012 at 02:10 IST

This s&p is a total farce organization; this is the same s&p which was gung ho about all the dot com stocks during the dot com bubble years from 1995 to 2000 until the bubble burst and s&p misled all the investors who relied on it for guidance; so I won't put an iota of relevance to what s&p says becuase it is totally bogus since its dot com years. May be it is trying to over correct itself for its bungling during the dot com hoopla and the real estate hooplas later on from 2002 to 2007/8. As far as the real smart investors are concerned s&p is a total joke and a clown to say the least.

from:  Krish
Posted on: Jun 12, 2012 at 02:06 IST

Another, "trick",along with the Media Hype,Blitz, for FDI in
retail,Diesel and other fuels' price decontrol and hikes,and pesnion
Funds.It is reported that "subsidies", to the rich oligarchs,by more
than Rs 5 Lakh Crores PER YEAR is "CONTINUING".This has to be stopped.So
also the LIE,called,"under-recoveries", by the Oil Cos,to the tune of Rs
1,38,000 CRORES PER YEAR.These two,[about Rs 6.38 LAKH CRORES PER ANNUM]
will relieve,the Finance Ministry.

from:  Sadasivan
Posted on: Jun 12, 2012 at 01:45 IST

This is just amazing! When did an S&P analyst get the right to talk about such things as who actually runs the government in India? I am not a fan of the UPA government, but to base a downgrade on such anecdotal evidence brings little credibility to the S&P. Mr. Mukherjee has focused on trivia to do his analysis.
Fortunately for India, there are strong countervailing winds that prevent Manmohan Singh, Montek Singh Ahluahlia, et al to push the "liberalization" agenda full steam, while India's other rating which is the U.N. Human Development Index falls and farmer suicides increase.
I am a researcher at MIT and is a former member of the professional staff of the U.S. Congress.

from:  Subrata Ghoshroy
Posted on: Jun 12, 2012 at 01:43 IST

The liberalization has, in toto, brought our economy under the control of the West.
It has also made million more poors and a few hundred multi-millionaires.
Now S&P wants to impose more liberalization. Dr Manmohan is not weak to dutifully implement the West's agenda. He is regarded as hero of liberalization which he began in the early 90s, during GATT days. He is subservient to the US, not serving his country. That is why he enters through back doors even after being rejected by his own people.
S&P intrudes into the government functioning and political structure.
While i dont proscribe Manmohan- Sonia governance, i strongly condemn the report of S&P.

from:  Marx P Selvaraj
Posted on: Jun 12, 2012 at 01:27 IST

S&P is wright. Our Prime Minister is a driver without steering in his hand. Eventhough he is seated in the driver's seat jus like as a scarecrow,THE CAR is controlled by the congress supremo from the back seat. Hence she is more safe from all the accidents without loosing the control. What we need is a strong Prime Minister able to take strong decisions at all level, also have better control over the cabinet. UPA, an utter failure in all fronts.

from:  Rajesh P R
Posted on: Jun 12, 2012 at 01:14 IST

If this article was written in India by an Indian, it would be been banned by the cabinet comitte by now and who ever reads this would have been termed as traitors of the country.

from:  Pavankumar
Posted on: Jun 12, 2012 at 01:15 IST

S&P is so 20th century. They gave a clean chit to ENRON for many years.

And where will these investors go if not India or Africa? Are these investors going to invest in US (recession), Europe (currency is about to breakup), Japan (in recession for a decade or more), China (no one knows anything, not even the Chinese.) We at least have a middle class and a lower class which wants to attain "middleclassdom". They all needs plastic doodads to buy. Which is what is development and growth!
Let S&P suggest an alternative destination to India. Time to call their bluff.

from:  avasaravadi
Posted on: Jun 12, 2012 at 01:03 IST

S&P is just telling the world what every reasonably well-informed Indian already knows. Except shouting slogans against the messenger of evil tidings, what else can the Congress party members and their supporters do? However the voters can do something, but for that we will have wait till the next election.

from:  K.Vijayakumar
Posted on: Jun 12, 2012 at 00:51 IST

When a credit rating agency that is expected to do rational analysis and rate per the facts of their analysis gets down to threat of down grading, How It can be trusted, I think, and furthermore it is nothing but intellectual dishonesty for preserving and protecting self interest. Thanks

from:  Onkar
Posted on: Jun 12, 2012 at 00:41 IST

Manmohan Singh has the distinction of being called "a technocrat and not
a politician" by British Broadcasting Corporation at the beginning of
his tenure as Prime Minister of India. Now at the fag end of his tenure,
supposing that UPA experiment will fail to win seats in 2014,he has been
called "unelected".
This explains the falling standards of Indian Polity with the Grand Old
Party of India contributing a major share to the blame

from:  manoharan
Posted on: Jun 12, 2012 at 00:19 IST

After the 2008 fiasco I wonder if anyone really cares what S&P thinks. In 2008, few weeks before Bear Sterns went bankrupt S&P gave them AAA rating. Couple of years back most European countries had A or higher rating even though their debt to GDP ratio was through the roof. I agree with their criticism of our Government but this will be just one day news.

from:  G Bhai
Posted on: Jun 12, 2012 at 00:18 IST

What a shame,it takes an outside rating agency to actually sun up the situation for us.Given the high levels of debt that the states and the center have racked up,it is going to take years for us to get into debt levels that will be sustainable.India does not stand a chance in competing globally with the current state of affairs.We need politicians who have the will to serve the public and not line their own pockets.India stands at a pivotal point with the population factor, this is the time when we can put the graduates to and get them to into an enrichment circle.

from:  vijay
Posted on: Jun 12, 2012 at 00:14 IST

S&P is merely stating the truth. Congress party is in denial and that does not change anything. The fact is India as a state is heading towards a collapse with all encompassing corruption and Indian people are responsible for this by virtue of their electoral verdicts in 2004 and worse in 2009. I feel Indian people deserve all this. Worst they are going to elect the same party again in 2014. And they will deserve more of this. As NRI I have lost faith in country of my origin and its people. I don't want to risk my money with investments in India.
It would be a diffrent story if Narendra Modi becomes next PM.

from:  Prasanna
Posted on: Jun 12, 2012 at 00:11 IST

The S&P has summed up the country's position very aptly. Frankly
speaking, India is being run not by an unelected economist prime
minister but by a Congress President who is delusional. Unfortunately,
that delusion has rubbed off on the the finance minister and all the
Congress MPs. The greatest sufferers will be the 1.2 billion Indians,
who have no one else to blame but themselves for continuing to elect the
corrupt and the uneducated.

from:  Nelson DSilva
Posted on: Jun 12, 2012 at 00:06 IST
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