Government may take more monetary measures to mitigate the impact of global slow down on Indian economy. Its primary concern is to maintain stability of growth rate and it believes in proactive approach in monetary policy. The chief economic advisor to Finance Ministry, Mr. Arvind Virmani said that aggressive monetary policy is a need of hour to ensure stability of finance system.

He added, "When the trigger is an external financial crisis, monetary steps are the primary defence.....When these external events are addressed by policy, the outcome is influenced by the two... My own view is that monetary policy (of the country) should have been much more proactive and aggressive than perhaps it has been."

Experts believe that government may announce another economic booster package to push demand in the domestic market. It has already announced Rs 30,700-crore package on December 7. RBI has already taken various measures by cutting key interest rates to inject sufficient liquidity in monetary system. The apex bank may further cut interest rates as per reports of financial consultant Dun & Bradstreet.

Meanwhile, representatives of the chamber of commerce met cabinet secretary, K.M. Chandrasekhar and demanded further revision in CRR and Rapo rate. They asked to issue special packages for labour-intensive segments such as textiles, leather, footwear, handicrafts and gems and jewellery besides more relief to reality and automobile sector. FICCI also asked for special incentives for industry in the wake of recessionary waves world wide.