India should not be in line for rating downgrade: Kaushik Basu

India, which has embarked on a second wave of economic reforms, should not be in the line for downgrade by global rating agencies, World Bank chief economist Kaushik Basu said today.

''India by no means is a prime candidate for downgrading in terms of rating. So especially, with these reforms now in picture India is not in a category to begin worry about downgrading,'' Basu said on the sidelines of Delhi Economic Conclave here.

He said India may see another "harsh" year in terms of economic growth in 2013, hit by the European financial woes "will remain very difficult up to end of 2014", Basu said, adding, "The European situation will remain very difficult up to end of 2014 and may be to the beginning of 2015.''

Basu, who was the chief economic advisor to the finance ministry from December 2009 to July 2012, said there is every chance of the country getting back to the 8-9 per cent growth rate in the next two years.

Credit rating agency Standard & Poor's had, earlier this week, said India faces ''one-in-three'' chance of rating downgrade in the next two years in case the government fails to push reforms ahead of the 2014 general election.

''The negative outlook signals at least a one-in-three likelihood of a downgrade within the next 24 months. A downgrade is likely if India's economic growth prospects dim, its external position deteriorates, its political climate worsens, or fiscal reforms slow,'' S&P said.