Economic stimulus measures won't stoke inflation: PM
10 Oct 2009
The stimulus measures announced in the wake of last year's economic downturn will continue for the time being as the economy is not yet operating at full capacity and inflationary consequences of the stimulus package are thus minimal, prime minister Manmohan Singh said in Hyderabad on Friday.
"Whatever has been provided in the stimulus packages by the finance minister will continue for the time being," he said.
The prime minister was replying to questions whether India would also continue with the stimulus since the G-20 summit in Pittsburgh had resolved to continue with the global stimulus package announced in London earlier this year.
He said the Indian economy is expected to post growth above 6.0 per cent although the effect of the floods in the south will be felt.
"The proposal of interlinking the rivers is there for a long time. This is not an easy task. There is also talk of environmental hazards this may lead to. We will have to take all issues into consideration," he said.
Impact of meltdown to last till 2011-12