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.

Hailing the recent cut in CRR by the apex bank, the industry said that it would definitely restore confidence of investors who are facing serious liquidity crunch following the breakout of global financial crisis. Chairman of Grasim Industries, D D Rathi said, "With reduction in interest rates, housing loans will become affordable. But the concern is that a proper recovery system needs to be put in place to take care of any apprehension in the minds of lenders over quality of credit.''

JSW Steel director (finance), Seshagiri Rao demanded more cut in CRR to ensure sufficient growth rate. He added, "Such stimulus packages must translate into lower interest rates, which does not seem to be happening. Interest rates need to be brought down to the 2004 levels--around 8-9%.''

CII president, K V Kamath said that more spending on infrastructure projects would help to propel demand and boost economy. Government has announced infrastructure projects worth Rs 100,000 crore to be implemented in the next 18 months as a part of the second stimulus package.

Godrej group chairman, Adi Godrej hailed the concerns of the apex bank and Union Government to speed up economic growth rate. He added, "This package was a badly needed one. In my view, the government must keep providing for such stimuli from time to time. With the previous packages, there has certainly been some easing.''