More measures coming to boost labour-intensive sectors: Pranab

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.

Written by Press Trust Of India | New Delhi | Published: February 7, 2009 12:34:28 am

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 year’s 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,India’s 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.

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