Govt taking steps to improve inflow of foreign investment: FM
"In
certain areas we have to take appropriate measures. We have already
started taking appropriate measures. These have started yielding
results. But its impact will take some time," he said.
On Monday, Fitch lowered India's
credit outlook to negative from stable, citing reasons such as
corruption, inadequate reforms, high inflation and slow growth.
It was the second rating agency to lower outlook after Standard and Poor's.
S&P had in April lowered India's
rating outlook to negative from stable. It also warned on June 11 that
the country may be the first in the BRIC grouping to falter and its
sovereign credit rating may slip below investment grade.
The government, Mukherjee said, had taken note of the concerns expressed by Fitch.
"There
is some improvement in FDI and FII inflows" he said, adding the steps
taken by the government to relax External Commercial Borrowings (ECB)
norms and creation of Infrastructure Debt Fund (IDF) too were yielding
results.
The Finance Ministry yesterday rejected the assessment of Fitch saying that its action was based on "old data."
Mukherjee
had said in a statement, "Fitch has primarily relied on older data, and
has ignored the recent positive trends in the Indian economy."
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