The Prime Minister's key economic adviser, C Rangarajan, has said that there is no case for lowering India's credit rating and global agencies need to look at the international scenario before taking any rating action.
"The rating agencies also need to recognise the fact, we have taken some strong actions in the recent period ... therefore I believe they do not have a strong basis for reducing the rating of India," Rangarajan, the chairman of the Prime Minister's Economic Advisory Council, said.

"The rating agencies need to judge the performance of India's economy in the context of what is happening in whole world ... I believe their attitude will undergo a change," he added.

Credit rating agencies like Standard & Poor's have threatened to lower India's credit rating in 24 months to 'junk' grade, if the country failed to carry out requisite economic reforms.

Rating agencies have lowered growth projections for the current fiscal and reduced the outlook to negative.

Even the Reserve Bank has cut its growth outlook for the current fiscal to 5.8% from the earlier projection of 6.5% in view of the worsening global economy.

S&P had in its report on October 10 said that there was one-in-three likelihood of a rating downgrade for India if "the country's economic growth prospects dim, its external position deteriorates, its potential climate worsens, or fiscal reforms slow."

Rangarajan said what rating agencies say impacts the cost of raising funds for the companies. "We need to convince rating agencies that India is a good destination for investment," he said.