Centre to be cautious on withdrawal of stimulus

Last Updated 11 January 2010, 17:06 IST

“We feel that we have to be cautious with our approach (on the withdrawal of stimulus). This will be done only  after we ensure that there is sustainable growth,” he said.

Given that there is still a pressure on export-oriented sectors from a crisis-hit global market, industry associations like Ficci and CII had recently urged the finance minister to continue the stimulus package for atleast six more months.

After completing its review of various sectors, the government is likely to announce further measures on Tuesday to extend support to weak sectors, Sharma said, indicating that these sectors could include handicrafts, leather and apparels.

“We have completed the sectoral review. Which all sectors should be given assistance will be announced tomorrow. We will see how leather, handicrafts and apparel sectors have performed,” he said.

Through the previous stimulus measures, the government has largely succeeded to check the ill-effects of the financial meltdown on Indian industries, he said.
While some sectors have recovered well, some others still require support, Sharma said.

“Although greenshoots (of recovery) are taking firm roots, very few doctors are there to say whether the time has come to stop the medication. If we have to sustain our development, we have to look at those grey areas which need urgent redressal,” Sharma said.

(Published 11 January 2010, 17:05 IST)

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