India rubbishes S&P’S warning

Economic affairs secretary Arvind Mayaram disputed global rating agency S&P’s contention that India had a 33 per cent change of a ratings downgrade in three years, insisting that it was not clear on what economic model the rating agency had built its conjecture.

Mr Mayaram claimed while there was concern over rising oil prices in the wake of the Syrian crisis, India had already initiated steps to curtail oil consumption, and did not see the case for a downgrade.

On the oil ministry’s recent suggestion to the prime minister and finance minister that India increase its oil imports from Iran to reduce the current account deficit, Mr Mayaram evaded a direct reply and insist- ed that India intend to remain within the parameters laid down by the United Nations while importing oil from Iran, which is at present under UN sanctions.

He said the quantitative easing programmes of developed economies (implying the United States and Japan) was a major concern for the emerging economies and would be discussed at the G20 summit of heads of state and governments starting here on Thursday.

He insisted that there should be no rollback of the “unconventional monetary policies” of the developed countries.

He said the summit would also discuss the lack of impulses for growth, besides cross-border taxation issues and rollback of investment in labour.