Indian corporate sector hailed the recently announced second stimulus package by the Union Government of Friday. The steps taken by the government to ease liquidity and relaxation in credit borrowing norms would help to propel economy. However, India Inc demands more fiscal measures to remove stress on the economy and to sustain its adequate growth rate. Industry demanded speedy implementation of spending on infrastructure projects.
Since The Union Government has announced the second fiscal stimulus package on Friday to sustain the adequate growth rate. It contains measures to provide credit at low interest rates, higher public spending and easing liquidity and export import related concessions to propel the economic growth and mitigate the impact of global slowdown. The Reserve Bank has also announced key interest rate revision as a part of this fiscal package.
Inflation rate continues to decline and currently stands at a 10-month low of 6.38%. It stood at 6.61 per cent last week and eased marginally following the decline in prices of almost all primary, manufactured and food articles. The inflation rate touched the peak level of 12.92 per cent in the first week of august, leading to tight monetary policy by the Reserve Bank of India to control price rising.
Second Fiscal Stimulus package to help labour intensive sectors may be announced in the evening today. The package may help stock markets as it will address the concerns of various sectors and will boost the sentiment. Experts believe that the second package will offer major help to various labour intensive sectors. In addition, the government may announce some ammendments to earlier package announced last month.
CNBC-TV18 has confirmed the reports from PMO sources that a package may be announced after market hours, around 6 pm. Market experts believe that India will be able to maintain a GDP growth above 7%.
The external debt of the country slides marginally to $222.6 billion in the second quarter ended September 2008.
According to the sources from Finance Ministry, the reporting quarter witnessed lesser commercial borrowings from abroad and non-resident Indian deposits that helped to decline the debt figures.
Country's external debt was registered at $223.81 billion at the end of June. The ratio of foreign exchange reserves to total external debt also stands at comfortable level of 128.6%.
The Union Government may announce some fiscal measures in the form of a second economic stimulus package in a few days to propel the growth of economy. It had earlier announced the first stimulus package on December 7 and taken various measures to mitigate the impact of global slowdown. Reserve bank is also likely to cut interest rates as part of the second proposed stimulus package.
Indian corporate sector hailed the recently announced second stimulus package by the Union Government of Friday. The steps taken by the government to ease liquidity and relaxation in credit borrowing norms would help to propel economy. However, India Inc demands more fiscal measures to remove stress on the economy and to sustain its adequate growth rate. Industry demanded speedy implementation of spending on infrastructure projects. 
Since The Union Government has announced the second fiscal stimulus package on Friday to sustain the adequate growth rate. It contains measures to provide credit at low interest rates, higher public spending and easing liquidity and export import related concessions to propel the economic growth and mitigate the impact of global slowdown. The Reserve Bank has also announced key interest rate revision as a part of this fiscal package. 
Inflation rate continues to decline and currently stands at a 10-month low of 6.38%. It stood at 6.61 per cent last week and eased marginally following the decline in prices of almost all primary, manufactured and food articles. The inflation rate touched the peak level of 12.92 per cent in the first week of august, leading to tight monetary policy by the Reserve Bank of India to control price rising. 
The external debt of the country slides marginally to $222.6 billion in the second quarter ended September 2008. 
The Union Government may announce some fiscal measures in the form of a second economic stimulus package in a few days to propel the growth of economy. It had earlier announced the first stimulus package on December 7 and taken various measures to mitigate the impact of global slowdown. Reserve bank is also likely to cut interest rates as part of the second proposed stimulus package. 
