New Delhi,Aug 12: Indian Prime Minister Manmohan Singh on Saturday opined that the recent downgrade of India's growth target by rating agency Moody was a matter of concern but expressed hoped that country would better last year's 6.5% GDP growth.

"It is a cause of concern but one should not draw unwarranted conclusions," Singh told media people when asked to comment on ratings agency Moody's analysis of the Indian economy.

Moody's research arm had reduced its forecast for India's economic growth this fiscal to 5.5% in beginning of last week.
However, Prime Minister expressed hoped that country would better last year's 6.5% of economic growth. "The fundamentals of Indian economy are strong.

Investments and savings are among the highest in the world. I am hopeful, we will do still better than 6.5% growth performance of last year," the Prime Minister said.

Moody's Analytics had said in its recent commentary that India's GDP growth rate is likely to be 5.5% for this year, while in 2013 growth is expected to touch 6%, adjusted from 6.2% earlier.

"There has been little policy response from either the Reserve Bank of India or the government and with global uncertainty dragging on, we see nothing on the horizon to lift the economy from its funk," Moody's Analytics Senior Economist Glenn Levine had said.