US downgrade: India should stay focused on growth, says Basu

"While I personally feel the US economy is very strong, rating downgrade like this is a wake-up call," Basu told PTI.

In an unprecedented move, Standard & Poor's downgraded the US government’s 'AAA'sovereign credit rating, stating that predictability about American policy making and political institutions have weakened at a time of fiscal challenge.

However, officials in the US Treasury said the decision of S&P, was flawed. Basu said it was time India focused on sustaining its growth. "Instead of wasting time ...debating whether S&Ps is doing a good job, we should redouble our effort to keep up our excellent track record of growth," he said.

Despite global uncertainties and high inflation, Indian economy grew by 8.5 per cent in fiscal 2010-11. It may slightly decline this fiscal, but is expected to stay above eight per cent, according to the RBI and the government projections.