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

B.Line:Pranab Mukerjee, Minister of Finance addressing media person's at Parliament House on S&P revises India outlook to negative, in the Capital on 24.4.12. Pic : 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.