Fearing further moderation in economic growth in the next fiscal,the government today said it would take more steps to boost the labour-intensive sectors.
As next years outlook is more downbeat… the government will take further steps to ensure that the labour-intensive sectors are less adversely affected, external affairs minister Pranab Mukherjee,who is currently holding charge of the finance portfolio,said while addressing a conference on financial crisis and global economic governance organised by Research and Information System (RIS) here.
He further said despite the global economic downturn,Indias economy is expected to grow at 7 per cent in 2008-09,after recording an average growth rate of 9 per cent for the last five years.
The government,the minister pointed out,has already taken a number of measures to inject liquidity,bring down the cost of borrowing and stimulate demand. Referring to the need of a regional mechanism to prevent deepening of the crisis,the minister said,We,in Asia,have the capacity to undertake significant counter-cyclical steps to drive the economy forward on the strength of domestic demand.
Mukherjee further said as a fallout of the current economic crisis,the structure of the global economy would change and have far-reaching implications for the future governance of the world.
The structure of global economic governance would need to be changed profoundly with major developing economies having a say in it, he said,adding that the failure to do so would result in new investment barriers and global market fragmentation.