Notwithstanding global
credit rating agency S&P's lowering India's outlook to 'negative', the
country remains bullish and its long-term economic growth potential is 8-9%,
Deputy Chairman of Planning Commission Montek Singh Ahluwalia has said.
"My view of India
is that it is bullish. India's
long-term growth potential is 8 to 9%. In order to achieve this, we have to get
our Macro-economic right," said Ahluwalia, briefing media at the third
Clean Energy Ministerial Meeting which concluded here last evening.
He added, "India
achieved a growth rate of 6.9% last year. The question is whether India's growth
in 2012-13 will go up or not. Growth is taking place in Asia - China and India."
Standard & Poor's on
Wednesday downgraded India's
credit outlook to 'negative' and warned of a downgrade if there is no
improvement in the fiscal situation and political climate.
Finance Minister Pranab
Mukherjee termed S&P's move as a "wake-up call" and said the
government would work towards achieving higher economic growth.
"The Finance
Minister has already commented on the Standard and Poor's decision to change
the outlook on India
from stable to negative. I have nothing to add to it," Ahluwalia said.
Yesterday, the Reserve
Bank of India
said the country's financial system is strong and sometimes these ratings are
discounted by markets.RBI Deputy Governor KC Chakrabarty has said, "Indian
financial system is strong. That is our internal assessment. That our financial
stability report always gives. Again, RBI’s financial stability report will
come in June. Then you can see what the position is."
