7% GDP in 2008-09; more to be done next fiscal: Montek
After the Rs 30,700-crore fiscal stimulus package, Planning Commission Deputy Chairman Montek Singh Ahluwalia said though the economy would grow at 7 per cent in 2008-09.
By PTI |
GURGAON: After the Rs 30,700-crore fiscal stimulus package, Planning Commission Deputy Chairman Montek Singh Ahluwalia on Tuesday said though the economy would grow at 7 per cent in 2008-09, more steps would be needed to retain the momentum in the next fiscal.
"I think we will have 7 per cent (GDP growth rate) this year, which is pretty good," he said on the sidelines of a function to inaugurate a blood bank at the Artemis Health Institute here.
Referring to the growth prospects in the next fiscal, Ahluwalia said, "We have to do something next year also, that is post-election. We will have plans ready to have strong stimulation."
He said as the Indian economy is linked to the global economy, growth next year could be less unless measures are taken to combat slowdown.
The International Monetary Fund (IMF) has recently said that global economic growth would further slow to 2.2 per cent from the earlier projection of 3 per cent and may have an adverse bearing on emerging economies, including India.
Ahluwalia said, "We have not actually made an estimate for next year's growth. I have been saying quite frankly it is a very difficult situation in the world economy. The US and Europe will have negative growth."
The government on Sunday slashed excise duty by four per cent across the board to boost demand and announced Rs 20,000 crore additional non-plan expenditure as part of a package.
Besides, the Reserve Bank has since October injected Rs 300,000 crore into the system through cuts in various mandatory deposit ratios and opening special refinance windows for mutual funds and small and medium enterprises.
"I think we will have 7 per cent (GDP growth rate) this year, which is pretty good," he said on the sidelines of a function to inaugurate a blood bank at the Artemis Health Institute here.
Referring to the growth prospects in the next fiscal, Ahluwalia said, "We have to do something next year also, that is post-election. We will have plans ready to have strong stimulation."
He said as the Indian economy is linked to the global economy, growth next year could be less unless measures are taken to combat slowdown.
The International Monetary Fund (IMF) has recently said that global economic growth would further slow to 2.2 per cent from the earlier projection of 3 per cent and may have an adverse bearing on emerging economies, including India.
Ahluwalia said, "We have not actually made an estimate for next year's growth. I have been saying quite frankly it is a very difficult situation in the world economy. The US and Europe will have negative growth."
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The government on Sunday slashed excise duty by four per cent across the board to boost demand and announced Rs 20,000 crore additional non-plan expenditure as part of a package.
Besides, the Reserve Bank has since October injected Rs 300,000 crore into the system through cuts in various mandatory deposit ratios and opening special refinance windows for mutual funds and small and medium enterprises.
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