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Journalism of Courage
Prime Minister Manmohan Singh is understood to have considered fresh measures with his key Cabinet ministers and the RBI Governor to limit the impact of the global financial crisis on the Indian economy.
The proposals, including fiscal and monetary support to exporters facing demand crunch in the developed world, were considered by a committee chaired by the Prime Minister.
Finance Minister P Chidambaram, Commerce and Industry Minister Kamal Nath, Planning Commission Deputy Chairman Montek Singh Ahluwalia and RBI Governor D Subbarao attended the meeting of the committee, constituted recently to find a way out of the global turmoil for the Indian economy.
Earlier in the day, Nath said the government is working on a fiscal package for exporters and reviewing the target of USD 200 billion for this fiscal.
“There is a slowdown in the economies in the western world; so there is bound to be slowdown in exports. The Prime Minister’s Committee (set up to handle the global crisis) will review this. We are looking at various measures that can help sustain exports,” Nath said at the India Economic Summit.
Concerned at the spill-over from the turmoil in India’s two biggest markets — the US and Europe — the Commerce Minister said, “I am reviewing it to see whether our target will be met or not. Till now, we are on track; but the next five months will determine whether targets (will be met).”
