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BJP says inner contradictions within Congress responsible for policy paralysis

June 12, 2012 - New Delhi

The Bharatiya Janata Party (BJP) on Tuesday said the global agency Standard and Poor's threat to downgrade India's credit rating is a serious matter, and blamed the inner contradictions within the Congress for the current policy paralysis.

"The downgrade possibility as predicted by Standard and Poor's, an international credit rating agency, is a serious matter and really it's a wake-up call for India. But the government despite of taking a firm decision as usual is in a denial mode. Ultimately, India's cost of international borrowing will rise," said BJP spokesperson Prakash Javadekar.

"The policy paralysis, which we are witnessing is because of the inner contradictions within the Congress, between the Congress and the government, between 10, Janpath and 7, RCR, within the Cabinet and within the coalition. That is why our economy is not having what it should have or what it's potential is," he added.

Javadekar also took potshots at Finance Minister Pranab Mukherjee for rejecting the Standard and Poor's report.

"Finance Minister represents the whole UPA culture. So, it is the whole UPA, which is at fault, as far as the management of the economy is concerned," he said.

In a strong statement, Mukherjee earlier said the government is fully seized of the situation and expressed confidence that there will be a turnaround in the country's growth prospects in the coming months.

"This (S and P report) is not based on a fresh rating action. Between April 2012 and now there are no significant events to indicate that the economy's vulnerability to shocks has increased, though the growth numbers for the fourth quarter 2011-12 have come below the expectations," he said.

Citing economic slowdown and political roadblocks to policy-making, rating agency S and P today warned India could become the first BRIC nation to lose investment-grade rating.


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