<p>India today dismissed the latest projection by Standard & Poor's that there was a more than one-in-three chance of ratings downgrade for the country in the next one to two years, saying there was "no chance" of this prospect.<br /><br /></p>.<p>Economic Affairs Secretary Arvind Mayaram while giving India's assessment of the S & P projection said the country has taken several measures to stabilise the economy despite the turmoil in the global economy.<br /><br />He also wondered which mathematical model was relied upon by S & P to come to the statistical conclusion of a potential downgrade.<br /><br />"There is no chance of a downgrade," he told reporters accompanying Prime Minister Manmohan Singh on his visit to Russia to attend the eighth summit of the Group of 20 industrialised and big emerging economies at St Petersburg.<br /><br />Mayaram was asked to comment on the S & P's projection on a negative outlook for India.<br /><br />At a news briefing in Seoul on Tuesday, Kim Eng Tan, an analyst at S & P, said, "We have a negative outlook on India. We think the chance of a downgrade in the next one two two years is one out of three".<br /><br />Tan called the chance of a downgrade of India higher than that of Indonesia, where the rupiah fell to a four-year low on Tuesday. Besides a widening Current Account Deficit (CAD) that has hurt India, the rupee has lost one-fifth of its value to a dollar this year.<br /><br />Replying to questions, Mayaram said government is committed to bring down the CAD, which touched a record high of 4.8 per cent of GDP in 2012-13 to USD 70 billion or 3.7 per cent of GDP this fiscal.<br /><br />"We will not breach the red line," Mayaram said referring to Finance Minister P Chidambaram setting out a red line of a 3.7 per cent fiscal deficit target.<br /><br />He did not rule out the possibility of the CAD getting even lower than 3.7 per cent.<br />Replying to questions, Mayaram said there is a lack of consensus in the G20 in areas of infrastructure investment in emerging economies for providing impetus to growth of sustainable economy. The World Bank is expected to give a report in this regard at the G20 summit.<br /><br />On global trade issues, Mayaram regretted the efforts by some emerging economies to rollback trade-related agreements in movement of services.<br /><br />"The earlier regime for movement of services should be maintained," he said, adding that India firmly believes there should be no rollback in that position.<br /><br />He disagreed with a suggestion that domestic factors like lack of structural reforms had also contributed to the stunted growth of the Indian economy.<br /><br />"There is case for greater reforms, deeper reforms. There is no reason to believe that reforms have not taken place,"he added.</p>
<p>India today dismissed the latest projection by Standard & Poor's that there was a more than one-in-three chance of ratings downgrade for the country in the next one to two years, saying there was "no chance" of this prospect.<br /><br /></p>.<p>Economic Affairs Secretary Arvind Mayaram while giving India's assessment of the S & P projection said the country has taken several measures to stabilise the economy despite the turmoil in the global economy.<br /><br />He also wondered which mathematical model was relied upon by S & P to come to the statistical conclusion of a potential downgrade.<br /><br />"There is no chance of a downgrade," he told reporters accompanying Prime Minister Manmohan Singh on his visit to Russia to attend the eighth summit of the Group of 20 industrialised and big emerging economies at St Petersburg.<br /><br />Mayaram was asked to comment on the S & P's projection on a negative outlook for India.<br /><br />At a news briefing in Seoul on Tuesday, Kim Eng Tan, an analyst at S & P, said, "We have a negative outlook on India. We think the chance of a downgrade in the next one two two years is one out of three".<br /><br />Tan called the chance of a downgrade of India higher than that of Indonesia, where the rupiah fell to a four-year low on Tuesday. Besides a widening Current Account Deficit (CAD) that has hurt India, the rupee has lost one-fifth of its value to a dollar this year.<br /><br />Replying to questions, Mayaram said government is committed to bring down the CAD, which touched a record high of 4.8 per cent of GDP in 2012-13 to USD 70 billion or 3.7 per cent of GDP this fiscal.<br /><br />"We will not breach the red line," Mayaram said referring to Finance Minister P Chidambaram setting out a red line of a 3.7 per cent fiscal deficit target.<br /><br />He did not rule out the possibility of the CAD getting even lower than 3.7 per cent.<br />Replying to questions, Mayaram said there is a lack of consensus in the G20 in areas of infrastructure investment in emerging economies for providing impetus to growth of sustainable economy. The World Bank is expected to give a report in this regard at the G20 summit.<br /><br />On global trade issues, Mayaram regretted the efforts by some emerging economies to rollback trade-related agreements in movement of services.<br /><br />"The earlier regime for movement of services should be maintained," he said, adding that India firmly believes there should be no rollback in that position.<br /><br />He disagreed with a suggestion that domestic factors like lack of structural reforms had also contributed to the stunted growth of the Indian economy.<br /><br />"There is case for greater reforms, deeper reforms. There is no reason to believe that reforms have not taken place,"he added.</p>