S&P THREAT TO DOWN-GRADE INDIA'S CREDIT RATING - A CONSPIRACY AGAINST INDIA

S&P threat to down-grade India's Credit Rating - a Conspiracy S&P, a leading International Credit Rating Agency has recently issued an advisory to the Indian Government to speed up the process of reform, and has other advised that they may down grade India's Credit Rating below investment grade. This is a clear-cut conspiracy against Indian economy and Indian society as some of the international agencies are trying to put unnecessary pressure, with a view to change the policies
of government of India and are pushing for introducing FDI in retail, defence sector, telecom, airlines and several other areas besides pushing the Indian government to undertake disinvestment of PSUs on an urgent basis.The reforms are in any case needed but only the reforms which are needed by India and which contribute to inclusive growth and a low cost economy. It is clear that the growth rate of Indian economy has recently come to a low level of around 5.5% in the quarter ended 31st March, 2012. The solution to various economic issues actually lie not in FDI reform but some where else. Action in the following areas is urgently needed:

• The industry is looking for liquidity. Reduction of interest rates and increase in liquidity fairly substantially; Real Estate and Infra sector need whole hearted support.
• Power Sector is suffering from coal linkage and clear-cut policies. Allocation of coal blocks as well as significant improvements in Coal India are immediate necessity beside positive signal to banking sector.
• Telecom Sector is suffering from 2G fiasco. It is important that the government issue telecom licenses at reasonable 

• prices, preferably on revenue sharing basis and ensure 
• that the policy do not result into accumulation of 
• spectrum in few selected hands and competition is 
• adequately supported by significantly reducing the entry 
• barrier in the telecom sector. A very heavy cost of telecom 
• licenses may result into increasing the cost of 
• telecommunication thereby negatively impacting the 
• entire economy.
• Foreign Exchange Reserve and Exchange Rates are 
• required to be attended by a policy initiative including 
• restriction on non essential imports and attracting foreign 
• remittance and investments, with the help of friendly 
• taxation and investment policy. The roving enquiries are 
• to be banned for ensuring investment climate improvement.
• Government must ensure that expenditure on 
• MNAREGA results into creation of fixed assets. Mega 
• projects like linking of important rivers can be taken up 
• under this scheme which shall seve the dual purpose.

We are committed as a nation that India will not succumb to 

international pressure and will ensure a continued growth 

momentum. A time has come to undertake credit rating of 

rating Agencies.