Stimulus exit only after full recovery: FM
The Financial Express, December 25, 2009, Page 2
fe Bureaus, Kolkata
Finance minister Pranab Mukherjee has said that the stimulus package announced by the government will be withdrawn only when there is a full recovery of the country’s economy.
“The stimulus was injected to boost the economy. Unless a full recovery is possible and the planners are in a position to make a hard assessment that it is the time to withdraw [stimulus] then only it will be done,” he said.
The Union government provided for three stimulus packages after the financial crisis to stall the declining growth of economy. It was done together with measures from the Reserve Bank of India.
Present at the 23rd Industrial India Trade Fair organised by the Bengal National Chamber of Commerce and Industry and the government of West Bengal, Mukherjee said that if there is even a negative growth of agriculture [during the third quarter] it will be adequately compensated by the manufacturing and services sector.
According to him, the first quarter GDP grew at 6.1% where the contribution of agriculture was 2.5%. In the second quarter GDP grew at 7.9% and the contribution of agriculture had come down to 0.91%. “That means services sector and manufacturing sector have contributed more towards the economy as well as the GDP basket,” he said.
Commenting on exports scenario, he said growth in exports could only be achieved when there is a robust growth in Europe, North America and Japan— the three destinations consume almost 62% of India’s exports.
“Exports fell for 13 consecutive months. There has been some recovery from November but I am not sure what the final figure will be at the year-end.”
The Financial Express, December 25, 2009, Page 2
fe Bureaus, Kolkata
Finance minister Pranab Mukherjee has said that the stimulus package announced by the government will be withdrawn only when there is a full recovery of the country’s economy.
“The stimulus was injected to boost the economy. Unless a full recovery is possible and the planners are in a position to make a hard assessment that it is the time to withdraw [stimulus] then only it will be done,” he said.
The Union government provided for three stimulus packages after the financial crisis to stall the declining growth of economy. It was done together with measures from the Reserve Bank of India.
Present at the 23rd Industrial India Trade Fair organised by the Bengal National Chamber of Commerce and Industry and the government of West Bengal, Mukherjee said that if there is even a negative growth of agriculture [during the third quarter] it will be adequately compensated by the manufacturing and services sector.
According to him, the first quarter GDP grew at 6.1% where the contribution of agriculture was 2.5%. In the second quarter GDP grew at 7.9% and the contribution of agriculture had come down to 0.91%. “That means services sector and manufacturing sector have contributed more towards the economy as well as the GDP basket,” he said.
Commenting on exports scenario, he said growth in exports could only be achieved when there is a robust growth in Europe, North America and Japan— the three destinations consume almost 62% of India’s exports.
“Exports fell for 13 consecutive months. There has been some recovery from November but I am not sure what the final figure will be at the year-end.”
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