New Delhi: Making a case for bigger and bolder stimulus package, economic think-tank Research and Information System (RIS) has pitched for a Rs2.5 lakh crore ($50 billion) package to boost industry, reeling under the impact of the global financial meltdown.
“I think we need stimulus package of $50 billion...the growth momentum is affected due to lack of demand. If you stimulate expenditure, it could revive demand,” RIS director-general Nagesh Kumar told PTI.
He further said that the government should not worry about rising fiscal deficit at this juncture and that a large stimulus package was needed, which could be spread over two financial years.
On the impact of stimulus packages announced by the government in the past, he said, “I think they were desirable but the country needs more sizeable stimulus package.”
Kumar, however, sounded positive on economic growth for the country by projecting 7% for 2009-10.
Indian economy, according to advance estimates for national income, is expected to grow by 7.1% during 2008-09, down from 9% in the previous fiscal.
“We are doing relatively well, India and China have become new growth poles of the world economy,” he added.
To boost the economy following the global financial crisis, the government has come out with three stimulus packages since December.