Expressing disappointment over the Standard and Poor's (S&P) assessment, the Confederation of Indian Industry (CII) director general Chandrajit Banerjee said that the negative outlook affirmation by S&P for India’s BBB- status is unfortunate. CII’s director said that although the Government has taken lot of measures through the parliamentary system and also through notifications, which have clear directional value in terms of reforms, the rating by S&P appears to be harsh on India.
By adding further, Banerjee said that the Government has further taken strong measures in the Union Budget to boost economic growth and that India can move faster on the back of these reforms. Concerned over the widening current account deficit and the fiscal deficit, the CII’s president said that Indian industrial bodies are confident that the Government would do everything necessary to bring these deficits under control.
The rating agency has affirmed its 'BBB-' long-term and 'A-3' short-term unsolicited sovereign credit ratings on India. Further, the global rating agency said there is 1 in 3 chance of downgrading India rating in the next 12 months.
