Congress condemns Moody's analysis on Indian economy

New Delhi, Aug.10 (ANI): The Congress Party on Friday condemned a Moody's Analytics report that cut India's growth forecast to 5.5 percent for this year, citing a lack of government or central bank action despite a broad-based slowdown, as well as a poor monsoon.

Addressing reporters in New Delhi, party spokesman Manish Tewari slammed the foreign rating agency for blaming the Congress-led government for the dipping growth rate.

"We condemn any report which claims that the federal government is the reason for the slight lagging behind of the economy. The reality is that the entire world is facing an economic slowdown. So do these people think that the governments of countries like America, European nations or BRIC countries that are facing a slowdown, not performing their duties?" said Tewari.

He lashed out at the agency over the language used to refer to the government.

"To make such accusations, or releasing such statements, are extremely unfortunate. I also condemn the language and vocabulary in the report. We feel that whenever such serious analytical reports are complied, ethical barriers should not be crossed," said Tewari.

The research unit of ratings agency Moody's Investors Service becomes the latest to cut India's growth forecasts this week.

CLSA and Citigroup cut their outlooks for India to 5.4 percent and 5.5 percent, respectively, although for the fiscal year ending in March 2013.

Moody's said the slowdown in India's economy "has been sharper and more broad-based than anticipated and is now deeply entrenched across all sectors of the economy," in a note dated August 8.

Despite the slowing growth, Moody's said both the government and the Reserve Bank of India had provided "little policy response."

Moody's added weaker-than-average rainfalls during the monsoon period would also weigh on India's growth. The research unit also cut its 2013 growth forecast to 6 percent from 6.2 percent. (ANI)