Finance Minister Pranab Mukherjee said ratings agency S&P revising its outlook on the Indian economy was no reason to panic and he felt confident that the economy would continue to grow around 7 percent and legislation would be passed in order to improve the fiscal deficit.
“I do not feel there is any reason to be panicky,” Mukherjee told reporters outside Parliament today.
“I am confident that the economy will grow at around 7 percent. We will be able to pursue fiscal deficit and it will be around 5.1 percent (of the GDP),” he said.
International ratings agency Standard and Poor’s today revised India’s long-term sovereign credit rating outlook to negative from stable.
The Finance Minister said the UPA government would pass legislation to aid the economic growth.
“Direct Tax Code which is a major tax reform will be in next parliamentary session,” he said
Other legislation we have also received approval from the Parliamentary standing committee and will be passed in the ongoing Budget session or in the Monsoon session, Mukherjee said.