Negative outcome from Standard&Poor's for Indian economy

Negative outcome from Standard&Poor’s for Indian economy

According to a recent report released by Standard&Poor's on June 30, the outlook for Indian economy is again negative which is due to the rising public debt, high goverment deficit equivalent to about 10% of GDP for the last 2 years and shares of investments decreasing by 4% to 6% of GDP in the last 10 years. However, the rise in foreign reserves and growth of GDP between 5-6% are appraised by the international credit rating agency as it will lower the negative effect of the rising public debt. Meanwhile, according to the recently released figures, pig iron production in April-May 2003 period grew up from 737'000 tons to 924'000 tons with a 25.37% increase compared to same period a year ago. Added to that, steel production in India reached to 12'958'000 tons for the first five months of this year increasing by 10.8% compared to 11'694'000 tons recorded in the same period in 2002. India's May 2003 steel production is recorded as 2'643'000 tons which increased by 15.5% when compared to 2'289'000 tons recorded in May 2002.