The government has said, the nation's economy is on right track and the reforms will continue. Expressing disappointment over rating agency – Standard & Poor's assessment, Finance said the government's fiscal policies are in the right direction and there is nothing to be worried about. The response was to Standard & Poor's warning that it may downgrade India's sovereign rating to junk grade if the government fails to pursue reforms and check deterioration in fiscal and Current Account Deficit.

Commenting on the report, Economic Affairs Secretary Arvind Mayaram said that he does not think there is a great deal of concern over this.

Chief Economic Adviser Raghuram Rajan said, it is disappointing that S&P has not seen it fit to improve its outlook for India, especially when the agency acknowledges the important steps taken by the government in recent months.