Montek for continuance of stimulus till March-end
Planning Commission pitches for continuation of stimulus provided to indus till March-end, notwithstanding the robust 7.9% growth recorded in Q2.
New Delhi: The Planning Commission today
pitched for continuation of the stimulus provided to the
industry till the end of March, notwithstanding the robust 7.9
per cent growth recorded in the second quarter.
Describing the 7.9-per cent growth rate as "very good
news", Planning Commission Deputy Chairman Montek Singh
Ahluwalia today said: "I don`t believe that at present there
is any particular reason to change the policy (concerning
stimulus). The policy has worked and I think where it has
worked, we should let it have its full effect."
Ahluwalia said the right time for reversing the
government`s expansionary stance would be at the time of
policy planning for the next fiscal year.
"I have said on many occasions that the right time to
consider the exit issue will be when we are preparing the
policy framework for next year, that is, 2010-11. So, I think
we will see in February what things are like," he said.
Crediting the country`s success story to the reform
process, he said it is important to continue the process.
"The reason why we are a success story is that the reform
process is working. I think the thrust on reforms would
continue, should continue. It has delivered very good results
for us. Continuation of the reform process is very important,"
the Plan panel head said.
The Planning Commission is most likely to revise upwards
its earlier GDP estimate of 6.5 per cent for this fiscal, he
Without giving a new forecast, he, however, said he could
not assume that third and fourth quarters would register
same growth as in the second quarter.