More stimulus packages on the anvil

The central government and the RBI will jointly work to chart out more stimulus packages for industry, Home Minister P Chidambaram said in Chennai.

The central government and the Reserve Bank of India (RBI) will jointly work to chart out more stimulus packages for industry, Home Minister P Chidambaram said in Chennai Saturday.

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"The country is facing only a slowdown and not a recession. Counter and corrective measures have to be taken to increase domestic demand," Chidambaram said.

Launching the BYST Growth Fund promoted by Bharatiya Yuva Shakthi Trust (BYST), a charitable organisation that helps underprivileged youth set up businesses, the International Finance Corp (IFC), and private equity fund VenturEastthe, the former finance minister added that the government is taking fiscal measures while RBI is taking monetary measures for that purpose.

The BYST Growth Fund, with an initial corpus of $700,000, will provide financing and mentoring for young Indian entrepreneurs faced with growth opportunities but limited resources.

The fund managed by VenturEast is the country's first micro-equity initiative to finance socially disadvantaged entrepreneurs, said Sarath Naru, managing partner.