Recession reports - India may announce 3rd stimulus package soon
The Financial Express quoted Mr Ashwani Kumar minister of State for Industry as saying that the India Government is likely to announce a third stimulus package soon to fuel economic growth.
Mr Kumar said that "There will be sector-specific packages announced very soon to boost consumption. There will be some packages for the infrastructure sector as well as for exporters." He, however, did not divulge any details about the proposed package.
He said that the current year would be a difficult year, but the country would still clock a respectable 6.5% to 7% growth. He added that the recent monetary and fiscal measures initiated by the Reserve Bank and Finance Ministry would take around six months to make their impact felt.
He added that comparing India's economy with China, India's economic growth momentum has been on the back of domestic consumption while that of its neighbour has been export driven.
Mr Kumar said that "Domestic consumption is not shaken. When the world starts getting out of the morass it is in right now, India will be in the front league, we have to be realistic and accept that we will not grow at a rate of 8.5% or 9%. The rest, except China will show negative growth. Despite the turbulence, India has been able to insulate itself."
Source: The Financial Express
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