Stating that the Indian economy should not be viewed through a prism of current account and fiscal deficits alone, the Confederation of Indian Industry (CII) on Wednesday said the rating agencies should look at the fundamentals of the economy and the medium term prospects.
"Over the last year, the government has ushered in an array of reform measures which are all aimed at further opening up of the economy, even while contributing to fiscal consolidation and containment of CAD. The Government has also assured that the current account deficit would be fully financed. Our exports have started looking up and trade deficit has narrowed on account of steps to discourage non-essential imports," said CII Director General Chandrajit Banerjee on talks about rating downgrade.
"CII also expects the economy to pick up during the second half of this fiscal. Besides, the recent slide of the rupee is a result of the global and not entirely local factors which is evident from the fact that virtually all emerging economies witnessed a slide in their value of currencies against US dollar," Banerjee added.