This is with reference to “S&P revised India outlook to negative” ( Business Line , April 25). We might boast of a growing economy, but perhaps it is not. In the face of the economic slowdown prompted by rising interest rates, alarming fiscal deficit at 5.9 per cent of GDP and high inflation, Standard and Poor's downgrading of India's rating to negative, should not come as a surprise.

A silver lining in the dark cloud, however, is a cut in key policy repo rate by 50 bps by the RBI in the recent Monetary Policy, which is likely to provide a fillip to growth.

While banks have been mandated to cut the lending rates to pass on the benefits to the borrowers, the Government has a more responsible role to play in ensuring fiscal discipline..

S. Umashankar

Nagpur

Danfoss clarifies

With reference to the report “Danfoss will invest Rs 1,350 cr to expand India operations” ( Business Line , April 20), the company clarifies that “Danfoss intends to invest 0.5 billion Danish Kroner, or Rs 450 crore, in India between now and 2015 and reach sales of products in India of 1.5 billion Danish Kroner, or Rs 1,350 crore in India by 2015.

Danfoss does not have any plans to produce compressors in India.

We plan to produce filter driers and industrial valves in India.”

Our correspondent replies : The report was filed after checking with a Danfoss official that the figure mentioned in the briefing was 1.5 billion DKK. Likewise, the possibility of introduction of compressors was clearly mentioned by the President and CEO of Danfoss.

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