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Sep 26, 2012

S&P Downgrades India's Growth Estimate

image Rating agency Standard & Poor's lowered India's economic growth projection for 2012 citing global uncertainty.

S&P estimates an annual growth of 5.5 percent, which is weaker than its earlier forecast of 6.5 percent. Similar to this view, most research groups project a below 6 percent growth this year.

Rejecting the assessment of S&P, Prime Minister’s Economic Advisory Council chairman C. Rangarajan reiterated that the economy will expand 6.7 percent as growth is set to pick up in the second half of the year.

In April, S&P downgraded India's sovereign rating outlook to negative and warned that there is one in three chances of a rating downgrade. Now India has the lowest investment grade rating of BBB-.