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Subbarao Says India Needs to Prepare for Any Credit Downgrade

Reserve Bank of India Governor Duvvuri Subbarao said India needs to prepare for a downgrade in its credit rating.

“It is still possible that we’ll maintain this rating,” Subbarao said today in a speech at Cornell University in Ithaca, New York. “However, we need to prepare for” any downgrade and an outflow of investment.

“We have managed outflow in the past and we can manage,” he said. “Should our rating be downgraded, I think we’re quite prepared.”

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