Despite the slew of policy reforms announced by the government last week, Rating agency Standard & Poor's (S&P) today lowered India's GDP growth forecast to 5.5% . The agency also cut China's gross domestic product growth forecast to 7.5 percent from 8 percent and Japan's to 2 percent from 2.5 percent.
The global rating agency cut its outlook on India's sovereign rating of `'BBB-' to negative from stable in April. Even Moody's was unimpressed by the reforms and said last week that the measures were too small to affect the country's sovereign rating.
Earlier, Indian rating agency CRISIL too had slashed its forecast for the country's GDP growth to 5.5% from 6.5% for this fiscal. HSBC has also cut growth forecast for fiscal 2012-2013.
India's Planning panel also lowered annual average economic growth rate to 8.2% in the 12th Five Year Plan (2012-17) from the earlier 9% due to lower economic growth and lack of appropriate policy measures.