Credit Downgrade Highlights India's Economic Challenges

 　　The U.S.-based financial ratings agency Standard & Poor’s has revised its credit outlook for India from stable to negative.  The downgrade has brought into sharp focus the challenges of India's slowing economy.

　　Standard & Poor’s revised outlook for India from stable to negative was prompted by concerns about the country’s high debt and fiscal¹ deficit² and its failure to move ahead with critical economic reforms.

　　Finance Minister Pranab Mukherjee has said there is no need to panic. But officials admit the rating agency’s move is a wake-up call. The government is promising³ some financial reforms during the ongoing⁴ session of parliament.

　　Economist⁵ A. Prassana at ICICI Securities in Mumbai says the government needs to bring its huge spending under control. But he says there are concerns that stiff political opposition⁶ will continue to pose a challenge to implementing⁷ key economic reforms.

　　“The most urgent task or the most important step is to contain the fiscal deficit. I think they should try and better which they have set for themselves, which is five point one percent of GDP. There is a long list of reforms," Prassana stated. "What has been happening there has been a lot of talk over the last six months. But ultimately no action is being seen on the ground.”

　　One of the most critical reforms is cutting down fuel subsidies⁸ given to consumers, which are a huge drain on government finances.

　　Economists⁹ stress the need for quick action. They point out that India risks losing its prized investment grade status if its financial situation worsens over the next one to two years. Standard and Poor’s has warned that India faces a one-in-three chance of losing its triple-B rating.

　　Such a downgrade would scare foreign investors¹⁰. It would make borrowing more expensive for India. It would also weaken the local currency, which has already depreciated¹¹ against the dollar by nearly 20 percent in the last year. This in turn would push up the cost of oil in a country that imports more than three quarters of its crude oil requirement.

　　Observers say India needs to restore confidence in the economy. While officials expect the pace of growth to accelerate this year, economist Prassana is skeptical¹².  “I don’t see we are going to see any robust¹³ recovery. If the government does not get its act together we will grow at sub-optimal levels," he said. "And therefore fall behind our own targets we set ourselves in terms of development targets.”

　　India’s economy has grown briskly for several years and the country is seen as an important emerging economy. But growth slipped below 7 percent last year, the lowest in three years.

1 fiscal   

adj.财政的，会计的，国库的，国库岁入的

参考例句：

• The increase of taxation is an important fiscal policy.增税是一项重要的财政政策。
• The government has two basic strategies of fiscal policy available.政府有两个可行的财政政策基本战略。

2 deficit   

n.亏空，亏损；赤字，逆差

参考例句：

• The directors have reported a deficit of 2.5 million dollars.董事们报告赤字为250万美元。
• We have a great deficit this year.我们今年有很大亏损。

3 promising   

adj.有希望的，有前途的

参考例句：

• The results of the experiments are very promising.实验的结果充满了希望。
• We're trying to bring along one or two promising young swimmers.我们正设法培养出一两名有前途的年轻游泳选手。

4 ongoing   

adj.进行中的，前进的

参考例句：

• The problem is ongoing.这个问题尚未解决。
• The issues raised in the report relate directly to Age Concern's ongoing work in this area.报告中提出的问题与“关心老人”组织在这方面正在做的工作有直接的关系。

5 economist   

n.经济学家，经济专家，节俭的人

参考例句：

• He cast a professional economist's eyes on the problem.他以经济学行家的眼光审视这个问题。
• He's an economist who thinks he knows all the answers.他是个经济学家，自以为什么都懂。

6 opposition   

n.反对，敌对

参考例句：

• The party leader is facing opposition in his own backyard.该党领袖在自己的党內遇到了反对。
• The police tried to break down the prisoner's opposition.警察设法制住了那个囚犯的反抗。

7 implementing   

v.实现( implement的现在分词 )；执行；贯彻；使生效

参考例句：

• -- Implementing a comprehensive drug control strategy. ――实行综合治理的禁毒战略。 来自汉英非文学 - 白皮书
• He was in no hurry about implementing his unshakable principle. 他并不急于实行他那不可动摇的原则。 来自辞典例句

8 subsidies   

n.补贴，津贴，补助金( subsidy的名词复数 )

参考例句：

• European agriculture ministers failed to break the deadlock over farm subsidies. 欧洲各国农业部长在农业补贴问题上未能打破僵局。
• Agricultural subsidies absorb about half the EU's income. 农业补贴占去了欧盟收入的大约一半。 来自《简明英汉词典》

9 economists   

n.经济学家，经济专家( economist的名词复数 )

参考例句：

• The sudden rise in share prices has confounded economists. 股价的突然上涨使经济学家大惑不解。
• Foreign bankers and economists cautiously welcomed the minister's initiative. 外国银行家和经济学家对部长的倡议反应谨慎。 来自《简明英汉词典》

10 investors   

n.投资者，出资者( investor的名词复数 )

参考例句：

• a con man who bilked investors out of millions of dollars 诈取投资者几百万元的骗子
• a cash bonanza for investors 投资者的赚钱机会

11 depreciated   

v.贬值，跌价，减价( depreciate的过去式和过去分词 )；贬低，蔑视，轻视

参考例句：

• Fixed assets are fully depreciated. 折旧足额。 来自《现代汉英综合大词典》
• Shares in the company have depreciated. 该公司的股票已经贬值。 来自辞典例句

12 skeptical   

adj.怀疑的，多疑的

参考例句：

• Others here are more skeptical about the chances for justice being done.这里的其他人更为怀疑正义能否得到伸张。
• Her look was skeptical and resigned.她的表情是将信将疑而又无可奈何。

13 robust   

adj.强壮的，强健的，粗野的，需要体力的，浓的

参考例句：

• She is too tall and robust.她个子太高，身体太壮。
• China wants to keep growth robust to reduce poverty and avoid job losses,AP commented.美联社评论道，中国希望保持经济强势增长，以减少贫困和失业状况。