Only after a month of holding office as the Chief Economic Advisor Raghuram Rajan has seconded the reforms of the Prime Minister saying that they have helped the economy of the nation. He said that the the nation is now different in the perceptive of foreign nations. He said that the gravity on the downhill economic growth can be reversed and the dreaded credit ratings downgrade can be avoided altogether.

He mentioned that the probability of GDP growth slipping below 5%, as predicted by some private forecasters, had "decreased quite considerably" in the past few weeks and the government's economic reforms would "give us some upward momentum".

"I think it has definitely changed the perception about India outside because there was a sense that we were not able to do much, and the fact that we have been able to take few of the painful steps does improve the sense that this government can move forward," the 49 year Chief Economist said..

"I think we in India, if I may say so, tend to move from euphoric to absolute pessimistic without a stop in between. And, what may be true is that we are certainly experiencing what the world is experiencing in terms of downturn. Of course, we have homegrown problems. But I don't think anything is beyond fixing," he ventured, criticizing the citizens of the nation for their ideology.

Rajan said the government's "intent not just to change the sentiment but to change the ground reality" would not be lost on international credit rating agencies, which typically look for medium-term direction rather than just short-term numbers. He also mentioned that the situation is much better than the 1991 crisis that had paralysed the nation after the investors lost confidence to loan money to the country.

(AW- Anil)