Stating the Centre is reaching the limits on providing fiscal or monetary stimulus, Chief Economic Adviser Raghuram Rajan on Friday said the need of the hour was to improve investor confidence and create better environment for achieving sustainable growth.
“After the initial policy burst in the immediate wake of crisis, stimulus both on the fiscal side and on the monetary side, we ourselves are reaching the limits of stimulus and we must contemplate ways of generating sustainable growth again," he said.
The government had doled out large fiscal stimulus in the aftermath of the 2008 meltdown to arrest theeconomic downturn. "We need to create a better environment for growth. I think growth will follow," Rajan said.