US rating downgrade positive, negative for India: Official

August 7th, 2011 - 12:49 am ICT by IANS  

Chennai, Aug 6 (IANS) The downgrading of the US long term credit rating by global rating agency Standard and Poors (S&P;) from AAA to AA+ has positive and negative features for India, a finance ministry official said Saturday.

“Indian exports might be affected. On the positive side we could see more inflow of funds to India,” R.Gopalan, secretary, department of teconomic affairs in the ministry, told reporters on the sidelines of a function here.

He said one should look at the positive fallout as well.

Queried about the tackling the inflation by increasing the supplies of essential items, Gopalan said the measures announced in the union budget to increase agri produce like pulses and others are expected to bear fruit
soon.

Speaking at the inaugural function of Professor C.K.Prahalad Centre for Emerging India at the Loyola Institute of Business Administration (LIBA), Gopalan said: “We had good growth in early part of the decade.”

According to him, growth should be with equity and the country needs governance and legal rights for people.

“Our focus is on growth with equity,” Gopalan said.

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