India Inc has asked the government to immediately announce the fourth stimulus package to help India achieve over 7% growth rate in 2009-10.
The chief financial officers of different organisations who met at the CFO Roundtable Conference organized under aegis of the industry body, the Associated Chambers of Commerce and Industry of India (Assocham) on Friday asked the government to immediately announce the fourth stimulus package to help India achieve over 7% growth rate in 2009-10. The Indian industry is of the view that the finance minister should soon unveil the fourth stimulus package for India Inc in his budget proposals for 2009-10.
The CFOs who expressed these sentiments included Sanjay Panth, senior resident representative India, International Monetary Fund (IMF), Manoj Adlakha, head global Commercial Card, American Express, N Subramaniam, chairman, Venture Capital Association of India (VCAI), Munesh Khanna, managing director, Centrum Capital Ltd, and Kalpana Jain, senior director, Deloitte Touche Thohmatsu India Pvt Ltd.
Expressing the need of another stimulus package, Sanjay Panth, senior resident representative India, International Monetary Fund (IMF) said that the recovery of the Indian economy will take place in a gradual manner as IMF disagrees with the assessment that recovery would happen in the second half of the fiscal year.
?IMF did not expect faster recovery of world economy including that of India and therefore regulations in banking and financial sector are called for. The industry needs liquidity which ought to be made accessible at moderate interest rates for revival of demand and creation of infrastructure,? said Panth. Munesh Khanna , managing director of investment banking at Centrum Capital Ltd also expressed similar sentiments. Khanna said his organisation expected recovery from meltdown after mid of 2010 and there was no need for the industry to panic. Khanna reiterated the point made by India Inc by saying 50% of promises made in stimulus packages announced in the last few months have not been fulfilled and therefore the fourth stimulus package is immediately called for.
N Subramaniam, chairman, Venture Capital Association of India and partner, Baring Private Equity Partners (India) Ltd said that people are turning towards private equity because funds are not available with banks and the financial institutions. There is a need for more creation of more liquidity in the market and a fourth stimulus package.
DS Rawat, secretary general, Assocham said until tax reforms do not come, till then India will not have investments from outside.
Rawat further said that Assocham has prepared a recommendation for the government which says that financial sector should be made autonomous and their board of directors should have adequate powers to make changes and modifications in the interest rates.
