New Delhi: The government on Monday said
stimulus packages to perk up the economy during the slowdown
are not likely to be withdrawn this fiscal and the exit when
it happens will be a gradual one.
"The general indication today is that stimulus will
continue this year, that is the indications given by
everybody. Let us not think stimulus is something that will be
withdrawn all at once," Cabinet Secretary KM Chandrasekhar
told reporters on the sidelines of a CII event on competition
policy.
Chandrasekhar said certain things in stimulus packages
might be retained while certain things might go.
He, however, refused to specify which part of stimulus
will be withdrawn.
"We have not thought what to remove. Stimulus contains
many things that might change," he said.
Chandrasekhar said, right now all the indications given
to me by various ministries are that currently there is no
immediate move to change the stimulus packages.
At the seminar, Finance Minister Pranab Mukherjee, too,
said stimulus would be wound up when recovery is on a firm
footing.
Chandrasekhar said stimulus packages have been working
and there is improvement on all economic parameters.
Indian economy grew by 6.1 per cent in the first quarter
of this fiscal against 5.8 per cent in the preceding two
quarters.
There are signs of improvement in industry, which grew by
11 in August and 9.1 in September.
‘Competition in agriculture to benefit people’
Finance Minister Pranab Mukherjee further said competition in the agricultural sector would be a "litmus test" but would benefit people.
"There is a scope to include competition in the agriculture market. The real litmus test would be to reach out to the common man. This should offer better price mechanism," Mukherjee said.
Bureau Report with IANS inputs
First Published: Monday, November 16, 2009, 14:36