A slew of fiscal measures are on the anvil to boost growth in labour-intensive sectors as a concerned government gropes for options to prevent widespread joblosses amid the piling rubble of a global economic meltdown.
“The Government will take further steps to ensure that the labour- intensive sectors are less adversely affected," External Affairs Minister Pranab Mukherjee, who is also holding additional charge of the finance portfolio, said at a conference on financial crisis.
A government survey released earlier this week showed that about 5,00,000 jobs were lost during the October-December quarter.
The government is expected to use the Interim Budget on February 16 to announce the measures, which could include tax breaks and procedural changes to spur growth.
“After an average 9 per cent growth in the last five years, we expect the economy to grow at 7 per cent in the current fiscal despite the global economic downturn,” Mukherjee said at the conference of the Research and Information System for Developing Countries (RIS).
The Prime Minister’s Economic Advisory Council has estimated growth to average 7.1 per cent this year.