Tuesday, December 2, 2008

PM Panel To Discuss Booster Dose For Economy - Dec 02, 2008

Within days of taking extra charge of the Finance portfolio, Prime Minister Manmohan Singh will preside over a meeting of an apex committee to consider big-time expenditure on infrastructure for giving a booster dose to the economy impacted by the global downturn. The committee, comprising Planning Commission Deputy Chairman Montek Singh Ahluwalia and Reserve Bank Governor D Subbarao, is also likely to consider sops for the exporters, distressed by a sharp decline in overseas trade.

Proposals like interest rate cuts for the small and medium enterprises, and exporters were cleared by the Committee of Secretaries last week. Exports, which account for 18 per cent of the country''s GDP, plunged in October by over 12 per cent for the first time in seven years due to a severe demand slowdown in the US and Europe. GDP grew by 7.8 per cent in the first half of the current fiscal as compared to 9.3 per cent in H1 of the previous year.

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