`Stimulus roll-back only after ensuring sustainable growth`
The Centre will be cautious in withdrawing the fiscal stimulus packages given to key-sectors and will do so only after ensuring growth is sustainable in the economy, Union Minister for Commerce and Industry Anand Sharma said.
Mumbai: The Centre will be cautious in withdrawing the fiscal stimulus packages given to key-sectors and will do so only after ensuring growth is sustainable in the economy, Union Minister for Commerce and Industry Anand Sharma said.
"We feel that we have to be cautious with our approach (on the withdrawal of stimulus). This will be done only after we ensure that there is sustainable growth," Sharma told reporters at Bancon conference here.
Given that there is still a pressure on export-oriented sectors from a crisis-hit global market, industry associations like FICCI and CII had recently urged the finance minister to continue the stimulus package for atleast six more months.
After completing its review of various sectors, the Government is likely to announce further measures tomorrow to extend support to weak sectors, Sharma said, indicating that these sectors could include handicrafts, leather and apparels.
"We have completed the sectoral review. Which all sectors should be given assistance will be announced tomorrow.We will see how leather, handicrafts and apparel sectors have performed," Sharma said.
Through the previous stimulus measures, the Government has largely succeeded to check the ill-effects of the financial meltdown on Indian industries, he said.
While some sectors have recovered well, some others still require support, Sharma said.
"Although greenshoots (of recovery) are taking firm roots, very few doctors are there to say whether the time has come to stop the medication. If we have to sustain our development, we have to look at those grey areas which need urgent redressal," Sharma said.
However, Finance Secretary Ashok Chawla had last week said too much stimulus may not be good for the economy even as
Indian industry bodies have warned that any move to withdraw stimulus now could be counter-productive to the crisis-ridden sectors.
"Too much of stimulus when the body is getting healthy may not be a good thing. It can be injurious to health," Chawla had said.