India’s Steel Ministry’s Firoz Expects Slowdown in Manufacturing

Mumbai : A.S. Firoz, chief economist at India’s steel ministry, comments on the impact of the U.S. credit rating downgrade on India. Indian shares plunged today after Standard & Poor’s lowered the U.S. credit rating one level to AA+ from AAA, stoking concern that a slowdown in the world’s biggest economy will worsen.

India’s benchmark Sensitive Index fell as much as 3.2 percent, led by Reliance Industries Ltd. (RIL), India’s most valuable company, which sank to its lowest level in more than two years. Hindalco Industries Ltd. (HNDL), the aluminum maker that controls U.S.- based Novelis Inc., sank 5.2 percent. Infosys Ltd., the second- largest software exporter, declined as much as 4.9 percent.