PM to meet industry leaders on Saturday to review economic situation
The Financial Express, March 25, 2009, P2
fe Bureau, New Delhi
With the economy showing no signs of revival despite the government’s three fiscal stimulus packages, Prime Minister Manmohan Singh is scheduled to meet industry leaders on Saturday to review the situation and seek their suggestions to rev up flagging growth. Heads of the apex business chambers including Ficci, Assocham and CII have been also invited for the meeting.
India Inc has been pressing for increased government spending as well as announcement of new projects, especially in the infrastructure sector. But for the UPA, which is bound by the Election Commission’s model code of conduct because of the upcoming Lok Sabha elections this may not be possible.
On Tuesday, the Prime Minister exuded confidence that the stimulus packages announced by the government would help the economy recover in the next six to seven months.
“I am confident that because of the stimulus that our government has announced the revival of the Indian economy should take place in big way,” he said while releasing the election manifesto of the Indian National Congress.
The Prime Minister had earlier in November last year held similar consultations with India Inc, to gauge the impact of the global financial crisis on the Indian economy and promote growth by ensuring adequate liquidity in the system.
Since then the government and the Reserve Bank of India have also announced a series of stimulus measures, whose impact and implementation is being constantly reviewed by Cabinet Secretary KM Chandrasekhar.
But the stimulus measures announced by the UPA do not seem to have had much impact if key economic indicators like IIP and advance tax figures are taken into consideration.
While IIP contracted by 0.5% in January this year compared to a 6.2% growth in January 2008, corporate advance tax collections rose by a mere 18% in the fourth quarter of this fiscal. The only silver lining has been that inflation fell to 0.44% as per latest figures.
The country’s chief statisitician Pronab Sen also recently said that a 7.1% growth in 2008-09 may be a tad too optimistic. Meanwhile, the International Monetary Fund too said India’s growth could moderate to 6.25% in 2008-09 and 5.25% in 2009-10.
The Financial Express, March 25, 2009, P2
fe Bureau, New Delhi
With the economy showing no signs of revival despite the government’s three fiscal stimulus packages, Prime Minister Manmohan Singh is scheduled to meet industry leaders on Saturday to review the situation and seek their suggestions to rev up flagging growth. Heads of the apex business chambers including Ficci, Assocham and CII have been also invited for the meeting.
India Inc has been pressing for increased government spending as well as announcement of new projects, especially in the infrastructure sector. But for the UPA, which is bound by the Election Commission’s model code of conduct because of the upcoming Lok Sabha elections this may not be possible.
On Tuesday, the Prime Minister exuded confidence that the stimulus packages announced by the government would help the economy recover in the next six to seven months.
“I am confident that because of the stimulus that our government has announced the revival of the Indian economy should take place in big way,” he said while releasing the election manifesto of the Indian National Congress.
The Prime Minister had earlier in November last year held similar consultations with India Inc, to gauge the impact of the global financial crisis on the Indian economy and promote growth by ensuring adequate liquidity in the system.
Since then the government and the Reserve Bank of India have also announced a series of stimulus measures, whose impact and implementation is being constantly reviewed by Cabinet Secretary KM Chandrasekhar.
But the stimulus measures announced by the UPA do not seem to have had much impact if key economic indicators like IIP and advance tax figures are taken into consideration.
While IIP contracted by 0.5% in January this year compared to a 6.2% growth in January 2008, corporate advance tax collections rose by a mere 18% in the fourth quarter of this fiscal. The only silver lining has been that inflation fell to 0.44% as per latest figures.
The country’s chief statisitician Pronab Sen also recently said that a 7.1% growth in 2008-09 may be a tad too optimistic. Meanwhile, the International Monetary Fund too said India’s growth could moderate to 6.25% in 2008-09 and 5.25% in 2009-10.
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