7.1 pc good figure, stimulus needed for next fisc: Montek | business | Hindustan Times
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7.1 pc good figure, stimulus needed for next fisc: Montek

business Updated: Feb 10, 2009 01:00 IST

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Terming the 7.1 per cent projected growth rate in the current fiscal as a good figure, the Planning Commission on Monday said a fiscal stimulus package should be given next fiscal so that the growth sustains.

"We can continue the fiscal stimulus in the next year. It can be done as part of the full budget...In my view, there would be a continuing need for (more) fiscal stimulus and I hope we can do that," Planning Commission Deputy Chairman Montek Singh Alhuwalia told reporters in New Delhi.

Montek said the 7.1 per cent estimated growth rate is a healthy figure and projected similar growth as a good outlook for next year.

The Central Statistical Organisation today projected the economy to grow by 7.1 per cent in the current fiscal against 9 per cent last fiscal.

He said global demand in 2009 will be weaker than it is in 2008 and that is why the global economies are also slowing down.

However, the Indian economy would fare better than the rest of the world next year, he said. "The Indian economy should not be slowing down in the next year like rest of the economies," he added.

The government has announced two stimulus packages, and the RBI has injected liquidity of more than Rs 3,00,000 crore.