Get over S&P and look at the real problems of India

Credit ratings agency Standard and Poor’s today revised the outlook on India’s sovereign credit rating from stable to negative. It was enough to push markets - both equities and currency - to a knee jerk reaction, though they stabilised by the end of the day.

Firstpost spoke to Sourav Majumdar, our consulting editor and editor in chief of Entrepreneur magazine, about whether the revision came as a surprise and if we could expect more such outlook revisions.

He said the downgrade by S&P was not the most important part of the affair as the release says nothing new that India does not know already. The Reserve Bank - and even the finance minister - has spoken about the urgent need to fix the fiscal deficit problems. But words will no longer suffice.

The S&P note just emphasises the issues India faces and we could well see other ratings agencies taking a hard look at the India story.

Watch excerpts from the conversation in the video above.