Govt to announce measures to counter slowdown by week-end

Govt to announce measures to counter slowdown by week-end

New Delhi: Hit hard by the global slowdown, export, housing and financial sectors will get a fiscal as well as monetary package from the Government and RBI by the week-end.

A decision on the revival package was taken by the apex committee meeting tonight, chaired by Prime Minister Manmohan Singh, who yesterday took additional charge of the Finance portfolio.

“The Prime Minister held a meeting of the apex group and discussed in detail the measures required to be taken to counter the economic slowdown," a PMO official said, adding, “Based on his directions, a package of measures is being prepared, which will be finalised and announced by the end of the week."

Singh discussed sectoral issues with Home Minister P Chidambaram, RBI Governor D Subbarao and Planning Commission Deputy Chairman Montek Singh Ahluwalia.

The Government and Reserve Bank may further ease money supply, provide interest subsidy for specific sectors and come out with tax cuts for boosting demand.

The apex panel met in the backdrop of exports reporting a decline of 12 per cent in October, while several other sectors including automobile also seemed to be following the trend.

The US economy has been officially declared as recession-hit with adverse implications for Indian exporters and capital inflows.

Despite RBI injecting around 2,75,000 crore into the system, various sectors are facing liquidity problem and there is demand for further steps from the central bank to ease money supply.

After maintaining a GDP growth of over nine per cent for the last three years, the economy weakened to 7.8 per cent in the first half of this fiscal.