"One after the other, this is the second international ratings agency which has taken a gloomy view of the Indian economy. BJP has been repeatedly saying that if the external financial meltdown or the current eurozone crisis is being shown as a cause for Indian economy suffering, then it is only an alibi being used by the government," BJP spokesperson Nirmala Sitharaman said.
She insisted that the UPA government is fully responsible for the "mess".
Global rating agency Fitch's action follows rival Standard and Poor's (S&P) downgrading credit outlook from 'stable' to 'negative' less than three months ago in April. S&P also warned on June 11 that India may be the first in the BRIC grouping to falter and its sovereign credit rating may slip below investment grade.
Finance Minister Pranab Mukherjee dismissed Fitch analysis as one based on old data.
Countering this view, Sitharaman said, "The government is in denial mode. To reject Fitch analysis as one based on old data only makes things worse....
"....In April, IIP has fallen to 0.2 per cent and in May, WPI (headline inflation) has reached 7.55 per cent. Also fuel inflation has gone up by Rs 7.5 and the falling Rupee which is now breaching Rs 56 to a Dollar. If these factors are also taken into consideration, the assessment rating would be even worse." (MORE)