This is with reference to “S&P revised India outlook to negative” (Business Line, April 25). We might boast of a growing economy, but perhaps it is not. In the face of the economic slowdown prompted by rising interest rates, alarming fiscal deficit at 5.9 per cent of GDP and high inflation, Standard and Poor's downgrading of India's rating to negative, should not come as a surprise. A silver lining in the dark cloud, however, is a cut in key policy repo rate by 50 bps by the RBI in the recent Monetary Policy, which is likely to provide a fillip to growth. While banks have been mandated to cut the lending rates to pass on the benefits to the borrowers, the Government has a more responsible role to play in ensuring fiscal discipline..
- S. Umashankar, Nagpur (HBL)
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