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India has far less firepower and fiscal space now to respond to global crisis, according to Montek Singh Ahluwalia, deputy chairman of the planning commission. However, he added that most countries have exhausted the firepower and have limited room to respond. He admitted on the sidelines of G20 summit that India slowed down much more than expected. “India's slowdown is due to both global factors and domestic constraints,” he said, adding that the government is not in denial of the slowdown.“We will be lucky if we grow between 6.5-7 per cent this year,” he said. The Reserve Bank of India will announce credit policy review today and is expected to ease interest rates as GDP growth slowed down in January-March quarter to 5.3 per cent, the lowest in nine years. Meanwhile, inflation is still on the rise. WPI inflation for May stood at 7.55 per cent, marginally higher than April’s 7.3 per cent figure. The Rupee too has depreciated to new lows against the dollar this year. It hit a new all-time low of 56.52 in May. While India Inc has lashed out at the government’s lack of action in important reforms, government heads have accredited the slowdown to the crisis situation in Europe. Credit rating agency S&P recently warned that India would be the first BRIC nation to be downgraded to junk-status citing slowing GDP growth and political roadblocks to economic policymaking as some of the factors that could lead to such an action. Both Prime Minister Manmohan Singh and Pranab Mukherjee said on Saturday warned about the adverse impact of a deepening Eurozone crisis on India. “I am concerned about the Eurozone crisis and the depreciating rupee as nearly 30 per cent of our exports are to Europe,” Pranab said, adding that growth in advanced countries not up to expectations. Group of 20 nations or G20 are meeting at Mexico on Monday and Tuesday to discuss the deepening Euro zone crisis in the shadow of a faltering global economy. Greece recently concluded its major election that was to impact its decision to stay or exit Euro zone. Many have warned that the crisis in Europe would hit countries world over, including India if it worsens. “If weaknesses not handled, this crisis could be worse than 2008,” Montek Singh Ahluwalia said. He said that Europe needs to prevent a financial collapse and needs the support of the global community. “G20 is looking for credible reassurance on stability of global financial system,” Singh said. However, he added that the declaration by G20 would not be a detailed blueprint of action. “G20 declaration won't have any global rescue fund. Not expecting any silver bullet from G20,” he said. Moreover, India is not in a position where we would be looking for emergency assistance, he added. Referring to the emerging political situation in Greece which triggered the Eurozone crisis, Ahluwalia said the very strong statement by the Centre Right party which is likely to form the government that they want to continue with programme of reforms will calm markets a little bit. But, the real problem is how Eurozone is going to respond to resolve the crisis, he said, amid initial fears that Greece was headed for an exit from the Eurozone.