Commerce Min pitches for continuation of fiscal stimulus
Commerce and Industry Minister Anand Sharma called for continuation of the stimulus as exports are still contracting even as the Prime Minister stated that the fiscal measures would be phased out next year.business Updated: Nov 08, 2009 20:37 IST
Commerce and Industry Minister Anand Sharma on Sunday called for continuation of the stimulus as exports are still contracting even as the Prime Minister stated that the fiscal measures would be phased out next year.
"It is premature to think withdrawing or going for exit strategy. I am of the considered view that contra cyclical measures have to remain firmly in place..." Sharma told reporters at the India Economic Summit in New Delhi.
While addressing the global CEO and domestic industry in New Delhi the Prime Minister Manmohan Singh stated that stimulus measures would be phased out next year.
The government had announced three stimulus packages to boost the economy, after the global economic crisis erupted in September 2008.
With demand slowdown in the major markets including the US and the EU, the country's exports contracted by 13.8 per cent in September, dipping for the twelveth month in a row.
"...We will continue to give the support...Until we are assured that the contraction in major economies are over," Sharma said, adding that the ministry would review the impact of stimulus measures on the various sectors.
On the possibility of a market-opening pact with China, Sharma said, no such talks have been held while expressing concerns on the increasing trade imbalance with the neighbouring country.