Russia downplays downgrade threat to India

New Delhi, June 13 (ANI): Russian Ambassador Alexander M Kadakin has downplayed the Standard and Poor's report on India's possible downgrade, calling India a "prospering and growing" country.

Interacting with media on the sidelines of an event here, Kadakin maintained that the reports did not contain a grain of truth, and added that India is a prospering and a growing country.

"Well everybody can have his or her own opinion but I don't think that these reports carry any truth. India is a prospering and a growing country; it is a great power in the making. It is strong, it's getting strong and I don't think that these reports carry any truth," Kadakin said.

The latest report comes after India posted March quarter annual growth of 5.3 percent, its weakest pace in nine years and far below expectations.

Kadakin said that though it faced problems at the Koodankulam nuclear plant, Russia was investing in the telecom sector.

"Russia has been making investments like in telecom, but there are problems with Russian investments here. But Russia is making another investment in India's infrastructure for India's future like Koodankulam, that is I think the greatest thing," he said.

Kadakin added that if India wants to sustain its rate of growth, there is no other option but to resort to the development of nuclear energy.

"Well we are hopeful that the first two units will be commissioned very soon. The agreement for units three and four is ready and there will be another agreement coming for Koodankulam five and six. So, if India wants to sustain its rate of growth, there is no other option but nuclear energy," he said.

While India's credit rating is under pressure for a downgrade, fast-rising emerging market Indonesia is on the up and has just joined the ranks of investment-grade nations. Many see it as the new "I" in the BRIC acronym.

S and P assessed that India could become the first of the BRICS economies to lose its investment-grade status, less than two months after cutting its rating outlook for the country. (ANI)