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Updated: April 25, 2012 18:17 IST

S&P’s rating a timely warning, says Pranab

PTI
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Pranab Mukherjee addresses the media on S&P's decision to revise India outlook to negative in New Delhi on Wednesday. Photo : Kamal Narang
Pranab Mukherjee addresses the media on S&P's decision to revise India outlook to negative in New Delhi on Wednesday. Photo : Kamal Narang

Terming Standard and Poor’s decision to lower India’s credit rating outlook to negative as a “timely warning”, Finance Minister Pranab Mukherjee on Wednesday said there is no need to panic as the government is committed to economic reforms.

“I am concerned but I don’t feel panicky because I am confident that our economy will grow at 7 per cent, around 7 per cent if not plus. We will be able to control fiscal deficit and it will be around 5.1 per cent”, he told reporters here.

The Minister, however, said that government will take note of the S&P’s decision to lower India’s rating outlook to BBB — (the lowest investment grade rating) and work for achieving higher economic growth.

“So economic reforms will be on track. The reform process and necessary administrative decisions required to ensure that fiscal deficit is retained at projected level (will be taken).

“We should continue to work for higher GDP... We will take note. It is a timely warning”, the Minister said.

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The Minister is correct. The downgrade does not mean the government should panic now. That will come later when the enormous diesel subsidies are removed and Mamta issues an ultimatum to the government demanding a rollback.

from:  Viswanath
Posted on: Apr 25, 2012 at 21:56 IST

S&P revises India outlook to negative from stable: finally S&P musters up the courage to say what we always already knew. I have been screaming from the roof tops about Government profligacy and corruption for six years now. My letters on the subject in The Hindu and The Economic Times sparked off witch hunting Income Tax audits (Chidambaram was the impounder of no returnable "tax deducted at source" and imposer of "Cess" and other tax enhancements at that time).

from:  S. Suchindranath Aiyer
Posted on: Apr 25, 2012 at 20:15 IST

"So economic reforms will be on track. The reform process and
necessary administrative decisions required to ensure that fiscal
deficit is retained at projected level (will be taken).

“We should continue to work for higher GDP... We will take note. It is
a timely warning”, the Minister said."
This is the method used by the Globalists to implement their
rules.Create a problem.Offer THEIR NEEDS as solution....
Old habits die hard.....MM Singh up to his 1991 trick,again, and
becoming a Hero by Deus ex machina......BOP and CAD are
precarious.

from:  Sadasivan
Posted on: Apr 25, 2012 at 19:53 IST

I wonder why everyone blames the Govt.for not taking bold reforms to improve our
economy?With obstinates like Mamata and the Left blocking the growth oriented reforms at
the first chance,no one ever blames these people for the S andP ratings.Poor PM andFM
have their hands tied behind their backs.

from:  Arvind Pradhan
Posted on: Apr 25, 2012 at 19:24 IST

The credit ratings of all the countries including USA, UK have been downgraded.

India should ideally have gone up in the ratings as it is a viable growing economy in the
current recession.

All the political parties in India should be ashamed of this turn of events and act
responsibly.

Lot of legislative time is wasted in scoring political points. There is no coherent
strategy among all the parties to eliminate corruption and ensure transparency.

Pranab or Manmohan don't have magic wands to bring about improvements. The
nation as a whole has to get its priorities right.

We assume that India would automatically come up, and unfortunately the reverse is a
strong possibility the way the things are moving.

We don't have to feel sorry about what has happened as these credit rating agencies
have a narrow remit, and tend to under estimate the performance of developing
nations. However they do play a huge role in the movement of capital.

from:  Dr RKRAO REBBAPRAGADA
Posted on: Apr 25, 2012 at 19:16 IST

No doubt we need to work on the economic front and make India a powerful
& prosperous nation.But there is no need to give any undue importance to
S&P rating.It was S&P who gave AAA rating to many junk investments.S&P
rating played a crucial role in bringing the recession in 2008.All the
rich investment banks paid this corrupt agency to get AAA ratings for
investments which they knew would fail.

from:  sourav
Posted on: Apr 25, 2012 at 18:58 IST

When higher authoreties says there is no need for worry that means there is need for worry. No one says that there is need for worry... even when the situations are worse.

But yes we need some consolidation and reforms at the very high level to keep the talent in the country. That will definately make the situation good and keep us on the right track.

from:  Swapnil
Posted on: Apr 25, 2012 at 18:55 IST

India isn't facing a harsh reality, what we all were denying since last
fiscal when RBI caveat of India's economy. RBI continuously was removing
liquidity from market, and trying balancing the market by all its
effort.Government was in denial until S&P downgrade it in its rating.
Pranab have assured India will not see increased deficit but can he gurantee it, since 2014 election is binding their hand and minds too.

from:  Abhinandan Prasad
Posted on: Apr 25, 2012 at 18:52 IST

I agree with Piyush Dixit...MNCs and Food manufacturers are earning huge profits and an average Indian's standard of living remains as it is....When London claims that they are ready to receive Olympics 2012 three months in advance I am ashamed of our Common Wealth Games....when will we Indians have a comfortable life.....

from:  Venkat
Posted on: Apr 25, 2012 at 18:39 IST

By now country is too familiar with the govt's response to even serious
issues.'concerned,but I don't feel panicky' is often repeated
one.Merely quoting growth rate,fiscal deficit percentage etc will not
do.
Don't allow politics to influence vital issues.Build consensus to the
extent possible. Don't usurp entire credit for any success.Acknowledge
the cooperation of opposition.Keep national interest above everything.Is
this asking too much or minimum required?

from:  S.Srinivasan
Posted on: Apr 25, 2012 at 18:24 IST

Our Finance Minister’s reaction is very mature. There is no need to get sacred by the downgrade but how many of our politicians think like our FM? Most of them appear to be unconcerned about our country’s fiscal health even as our FM is having sleepless nights. Most of the politicians seem to have only aim: grab power and make money. One wishes that these gentlemen and gentlewomen wake up from slumber and take immediate steps to halt the slide of the economy by showing unanimity of purpose and sense of responsibility. They should make just one decision: no matter what, we would do every thing to put back the economy on a high growth path.

from:  NarendraM Apte
Posted on: Apr 25, 2012 at 18:08 IST

Ah the wisdom of Swadeshi !

The Bombay Plan has failed.
Globalisation (Capitalism Laissez Faire) is not a right model for India. Do NOT impose the Singapore model on India. It will lead to disaster - anarchy and revolution.

Its better to see reality and be back to Socialist India - and SWADESHI.

Our Moksha lies in Swadeshi.

from:  Shubhendra Bannerjee
Posted on: Apr 25, 2012 at 17:59 IST

The finance minister is always busy in projection of GDP. He neither talks about inflation and action to curb it. He knows that companies and food suppliers in the country taking extreme margin and profits over food items and other essential commodities.On other hand farmers are receiving less than MSP (Minimum Support Price) in reality. He never shows any intention to tackle the real problem India is facing. Only polishing his statement by using GDP. Even India's GDP improved, it can not ensure good standard of living in an average.
He should think before talk !

from:  Siddharth Raghuwanshi
Posted on: Apr 25, 2012 at 17:52 IST

'there is no need to panic as the government is committed to economic
reforms.' this is the best joke I have heard.. This government is really
playing with the future of India... I am not able to think even when you
are not able to take decision, why are you there? only to slower the
growth rate of Indian economy..

from:  PIYUSH DIXIT
Posted on: Apr 25, 2012 at 17:48 IST

Perhaps Mr. Troubleshooter should swap his Chair with MMS. Finally both may be put to their best use!
Not sure how bad things really are but as far as perception is concerned we have been repeatedly shooting ourselves in the foot. This could have been a good time for India to grow faster (RoW is slowing down but our growth is not export based). We could have focused on infra development and skill enhancement. Get foreign funds in the areas of our national interest (while we still can!).

from:  Neo
Posted on: Apr 25, 2012 at 17:24 IST

With due respect Mr.mukherjee I suggest you stop being obstinate and equivocal. I think its high time that you introduce and take some bold, solid, concrete measures to make India's economic roots strong as ever and to sustain investor's faith in India, failing to which we might see further downgrades which will jeopardise our dreams of being an attractive investment destination.If you cannot address this then please quit for your own good and betterment of our citizens as currently our reputation is at stake because of ridiculous policies of your government.Is it Montek Singh Alluwahlia calling?

from:  rajeev
Posted on: Apr 25, 2012 at 17:22 IST

Every thing will be alright and we will be a super power than USA if all politicians will stop corruption and all the black money will be back.

from:  Satyanarayan Behera
Posted on: Apr 25, 2012 at 17:12 IST

...and a warning to congress that if you dont do something substantial, then you risk next election.. :).

from:  Prasad
Posted on: Apr 25, 2012 at 16:45 IST

Yes for sure this should be taken as an eye opener. I am sure this issue can create a havoc in house.

from:  Mudit Jain
Posted on: Apr 25, 2012 at 16:37 IST
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