Fiscal stimulus must go on for another two years: Assocham

Fiscal stimulus must go on for another two years: Assocham

Jaipur: Assocham’s new president Dr Swati Piramal on Tuesday said the government should continue fiscal stimulus to industries and private sector for another year or two till the global recovery gets on a sound footing.

“Right now the global recovery is fragile, and the Central government should continue fiscal stimulus till signs of recovery in the west", Dr Piramal, who intends to work on a theme of “Growth, Youth, Health & Earth" during her tenure told a press conference here.

She said the 10% growth in industry was a good sign and the continuation of fiscal stimulus was vital for exports and manufacturing sectors.

She also called for a reduction in the repo and the reverse repo rates, increase in FDI limit for the insurance sector, massive investment for building mass transport facilities, promoting the concept of eco-2-cities (or cities that create economic opportunities for their citizens) for ecologically viable and sustainable cities, and extending the Delhi Metro up to Jaipur.

Dr Piramal said Assocham would work on key focus areas of rural health policy, stepping up rural education, water conservation and purification.

Proposing a public private partnership (PPP) in Rajasthan, she said, there was a need to promote food processing, dairy, heritage and monuments, textiles, organic farming and post-harvest management in the state.

Rajasthan has got a business potential of Rs4 lakh crore in the next five years, and Assocham would cooperate in the direction to explore the potential areas under PPP, she said. The new businesses will generate about 10 lakh new jobs in the state, she said.