TNI Bureau: Global ratings agency Standard & Poor’s has further downgraded India’s GDP forecast despite the strong economic measures taken by PM Dr. Manmohan Singh. India’s GDP forecast was reduced by 1% to 5.5% for 2012 due to scant rainfall, Eurozone crisis and weak economic recovery in the US.

The Standard & Poor’s (S&P) observed that the Eurozone crisis is not showing any signs of improvement, while the global recession has affected the US badly. Since India’s business ties with the US and European countries make significant contribution to the country’s economic growth, the GDP could be slow down further unless things change dramatically.