Cha-Am-Hua Hin (Thailand): Prime Minister Manmohan Singh on Sunday said stimulus measures announced to help
the economy to combat the global crisis would continue as
world economy is still not completely out of trouble.
"It is too early to say whether we are completely out of
trouble," Singh said, adding, "time not ripe for withdrawal of
The Prime Minister was in the Thai resort to participate in
the twin summits of Association of Southeast Asian Nations
(ASEAN) and East Asian leaders.
Indian government had announced three stimulus packages
to boost the economy reeling under the impact of the global
meltdown, which was triggered by the collapse of America`s
iconic investment banker Lehman Brothers.
The government had pumped in about Rs 3 lakh crore in
2008-09 and 2009-10, besides providing host of tax concessions
to the industry. In addition to the fiscal measures, the
Reserve Bank made available about Rs 2 lakh crore to help the
The issues concerning withdrawal of stimulus packages
were also discussed at the ASEAN meeting and the global
leaders were for a balanced approach.
The Prime Minister, however, parried questions on
interest rates and RBI`s upcoming monetary policy saying it is
the "preserve" of the RBI.
Singh said RBI is an independent body and he would not
like to comment. The Reserve Bank is slated to announce the
quarterly review of the monetary policy on October 27.
India and ASEAN had agreed to expedite trade agreement in
services as part of efforts to broad base the Free Trade
"We must learn lessons from the global economic crisis.
One of these is the need to ensure coordination in our growth
policies. The other is to keep the real economy strong and
sound," he said.
Following the global crisis, the economic growth rate of
India slipped to 6.7 per cent during 2008-09 from 9 per cent
in the previous fiscal.
As regards the current year, the projections are that
growth rate may further slip to 6.5 per cent. The economy
expanded by 6.1 per cent during the first quarter of the