"In their report, S&P raised concerns about issues such as the level of fiscal deficit and debt burden, increase in the current account deficit and the slowdown in the economic growth. However, the revision in outlook may have some perceptional impact.
"Government has taken note of these concerns," Finance Minister Pranab Mukherjee said in a written reply in the Lok Sabha.
He said S&P hasn't downgraded India's credit rating although it has revised the outlook on the long-term ratings of India from stable (BBB+) to (BBB-) negative.
"S&P's assessment should, however, be viewed in the context of the current economic difficulties that nations around the globe are facing and India's comparative performance which has been reflected in the recent rating that it has received," Mukherjee said.
He added that since April several sovereigns were downgraded but India's sovereign ratings have either been affirmed or upgraded in segments.
Mukherjee further said the Government is taking a number of steps to strengthen the economic health of the country.
"These include measures contained in the Budget 2012-13 that are aimed towards fiscal consolidation, improvement in investment environment, development of the infrastructure and industrial sectors, and further development of the human resources," he said. MORE