FM says Need for innovative remedies to revive growth | business | Hindustan Times
Today in New Delhi, India
Nov 19, 2017-Sunday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

FM says Need for innovative remedies to revive growth

Finance minister Pranab Mukherjee on Thursday dropped hints that India needs impetus from new policy initiatives to revive economic growth, as fiscal and monetary policy options are quite limited. HT reports.

business Updated: Dec 15, 2011 21:18 IST
HT Correspondent

Finance minister Pranab Mukherjee on Thursday dropped hints that India needs impetus from new policy initiatives to revive economic growth, as fiscal and monetary policy options are quite limited.

"Options today are much more limited. The options for fiscal steps as well as monetary measures are increasingly becoming limited. Innovative remedies would be required to address the challenges," he said at the Delhi Economics Conclave organised by industry body CII.

Mukherjee did not spell out in clear terms what he meant by "innovative remedies".

The minister admitted to the fact that government's fight against inflation and tight monetary policy regime were hurting growth and investment.

Indian corporate houses are already complaining of being hurt by high interest rates.

In 2008, after the collapse of Lehman Brothers, the government in several rounds provided a fiscal stimulus to the tune of Rs 1,86,000 crore, which is around 3% of GDP.

This stimuli was aimed at providing a cushion to businesses in the country to absorb the global economic shock. However, with widening fiscal deficit providing fiscal sops, this time, could be difficult for the government.