No reversal of stimulus, avers Montek

“We need to think now  about when we should be starting to moderate our stance. But for the present, there is no case for doing anything other than continuing the stimulus,” Ahluwalia told reporters here.

He said it would be a mistake to think that the world economy has recovered. “The fact is that the world economy has stopped going down, it’s beginning to recover but is still quite low,” he said.

For the current fiscal 2009-10, he said the country must make sure that the economy does better than 6.3 per cent.

Shying away from predicting a date for the government to exit from the stimulus measures he, however said the growth should first touch 7 per cent. “Definitely, once we get to 7 per cent growth and if inflation becomes uncomfortable...we need to look at these exit issues,”
Ahluwalia said further adding the Reserve Bank of India should take a call soon and is looking at the matter carefully.

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