ID :
52748
Sun, 03/29/2009 - 07:00
Auther :
Shortlink :
https://www.oananews.org//node/52748
The shortlink copeid
Indian economy needs more stimulus in 2009-10: Ahluwalia
New Delhi, Mar 28 (PTI) The Indian economy needs more
stimulus in the next fiscal to counter the impact of global
economic slowdown, Planning Commission Deputy Chairman Montek
Singh Ahluwalia said Saturday.
"We need a little more stimulus in 2009-10. But there are
certain issues which have to be taken up," Ahluwalia said on
the sidelines of a function here.
About the GDP growth projection by the Planning
Commission, Ahluwalia said multiple models have been used to
derive the figures and have been suggested to the Prime
Minister.
"We have sent a note to the Prime Minister. Planning
Commission dosen't have any projection. What we said to the
Prime Minister-- we used multiple models to know what is
likely to be growth rate next year," he said.
"There is certain base level of growth which we thought
was around 9 percent. Then you knock off from the growth the
affects of shock. Then we add to it the affect of the positive
stimuli... So there are different numbers depending on the
affects of shock and stimulus measures," he added.
Earlier, Ahluwalia projected a growth rate slightly less
than 7 percent in the current fiscal and the next fiscal.
"We are likely to get a growth rate less than 7 per
cent... between 6.5 and 6.7 percent in 2008-09," Ahluwalia
had said.
On market borrowings impacting the interest rate,
Ahluwalia said, "If you borrow it can only raise the interest
rate for any given level of monetisation. Markets borrowings
are not zero anyway."
Market borrowings, he said, "has always been market
borrowings and there will be market borrowings."
"The impact of the exchange rate is the function that
whether monetary policy accommodates the borrowing or not. So
its not that market borrowing increases and interest rates go
up. It is based on how much you borrow and tighten and
interest rates will go up," he added.
Earlier addressing a function on "Competition and
Regulation in India" by CUTS International he suggested
assessment and ranking of state electricity regulatory
authorities by the industry body CII or other bodies and
replicating it in all states based on best practices. PTI NAM
SAK
NNNN
stimulus in the next fiscal to counter the impact of global
economic slowdown, Planning Commission Deputy Chairman Montek
Singh Ahluwalia said Saturday.
"We need a little more stimulus in 2009-10. But there are
certain issues which have to be taken up," Ahluwalia said on
the sidelines of a function here.
About the GDP growth projection by the Planning
Commission, Ahluwalia said multiple models have been used to
derive the figures and have been suggested to the Prime
Minister.
"We have sent a note to the Prime Minister. Planning
Commission dosen't have any projection. What we said to the
Prime Minister-- we used multiple models to know what is
likely to be growth rate next year," he said.
"There is certain base level of growth which we thought
was around 9 percent. Then you knock off from the growth the
affects of shock. Then we add to it the affect of the positive
stimuli... So there are different numbers depending on the
affects of shock and stimulus measures," he added.
Earlier, Ahluwalia projected a growth rate slightly less
than 7 percent in the current fiscal and the next fiscal.
"We are likely to get a growth rate less than 7 per
cent... between 6.5 and 6.7 percent in 2008-09," Ahluwalia
had said.
On market borrowings impacting the interest rate,
Ahluwalia said, "If you borrow it can only raise the interest
rate for any given level of monetisation. Markets borrowings
are not zero anyway."
Market borrowings, he said, "has always been market
borrowings and there will be market borrowings."
"The impact of the exchange rate is the function that
whether monetary policy accommodates the borrowing or not. So
its not that market borrowing increases and interest rates go
up. It is based on how much you borrow and tighten and
interest rates will go up," he added.
Earlier addressing a function on "Competition and
Regulation in India" by CUTS International he suggested
assessment and ranking of state electricity regulatory
authorities by the industry body CII or other bodies and
replicating it in all states based on best practices. PTI NAM
SAK
NNNN
