The Government of India may come up with more stimulus packages for various sectors. In order to give relief to various sectors the government may declare the stimulus packages in the budget. According to economists, the Reserve Bank of India (RBI) may not slash the interest rate further, but it will approach bank for the reduction in lending rates.
Many banks including private and public sector banks have reduced their landing rates. The impact of the reduction in the lending rate led to rise in the index of industrial production (IIP). The banks have been changing their lending rates for last eight months since there is impact of the global financial crisis.
The impact of the global slowdown is high on export and manufacturing sectors. The duo sectors need prime attention of the government and it is expected the government would declared the packages to revive these sectors. In order to meet the huge amount of fund to provide the stimulus packages the government may try for additional sources of revenues.
The disinvestment of Public Sector Undertakings (PSUs) would be better alternative for the generation of funds to generate. The Coal Minister Sriprakash Jaiswal on Tuesday told media that the government may consider disinvesting up to 10 per cent stake in state run Coal India Ltd, which is the largest coal miner of India.
The economy will back on tracks again by end of this fiscal as the inflation is constant and the IIP is seen in the positive numbers. The IIP was seen in negative in the moth of October last year. Many major economies of the world had declared stimulus packages to their major sectors. And the India may register growth rate around 6 to 7 per cent by the end of this fiscal. The growth rate around 6 to 7 would be considered as impressive amid the global economic crisis. And it is also expected that the impact of the economic slowdown will become weak by the end of this fiscal.
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