The Planning Commission Deputy Chairman Montek Singh Ahluwalia on Tuesday said the economy will grow by 6.5 per cent during the current fiscal, which is much below the 7.1 per cent projected by the government earlier during the year.
Mr. Ahluwalia indicated that a 6.5 per cent GDP growth during the new fiscal starting April 1, 2009 "will be a major achievement" and would require additional stimulus - over and above what has been announced in the Interim Budget to boost the growth. Ahluwalia also said that the low inflation gives us a lot of room in (the) next six months to use all available instruments to ensure growth picks up.
He said that in spite of high fiscal deficit there is a case for more fiscal stimulus for the next fiscal. The government had announced three stimulus packages since mid-September to help industry reeling under the impact of the global economic crisis.
Mr. Ahluwalia indicated that a 6.5 per cent GDP growth during the new fiscal starting April 1, 2009 "will be a major achievement" and would require additional stimulus - over and above what has been announced in the Interim Budget to boost the growth. Ahluwalia also said that the low inflation gives us a lot of room in (the) next six months to use all available instruments to ensure growth picks up.
He said that in spite of high fiscal deficit there is a case for more fiscal stimulus for the next fiscal. The government had announced three stimulus packages since mid-September to help industry reeling under the impact of the global economic crisis.
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