Setting the stage for another stimulus package, Prime Minister Manmohan Singh met the three-member Investment Commission led by Ratan Tata to discuss measures to boost industrial production and foreign investment.

?The meeting was meant to take stock of the data and events of the past fortnight?, said a source. The government has announced a fiscal and monetary package in this period, but the data on GDP, investment, exports and consumption all released in this period show the economy is definitely slowing. The latest data released on Friday showed industrial production had turned negative in October. India Inc now feels the government steps are not sufficient to counter the economic downturn.

The commission, which also includes Deepak Parekh, chairman of HDFC, and Ashok Ganguly, chairman of ICICI OneSource, was set up in 2005 to facilitate big-ticket investments from home and abroad. The panel also makes policy recommendations to the government and advises it on the suitability of projects and investment proposals to be promoted.

The government has received representations from industry chambers, exporters and others on steps to boost the economy and the Investment Commission is expected to guide the PM on shortlisting them. On Wednesday textile minister Shankersinh Vaghela and the Prime Minister had meeting to discuss fresh measures for the textile sector as well as resolve the contentious issue of cotton support price.

Friday?s meeting also included Planning Commission deputy chairman Montek Singh Ahluwalia, who will have to decide how the government will spend the additional Rs 20,000 crore Plan expenditure announced in the package last Sunday. Commerce and industry minister Kamal Nath has already indicated that the government will announce another fiscal package next week for exporters and specific sectors such as engineering, textiles and agriculture.

The package could include additional fiscal steps such as removing the specific excise duty on automobiles, more funding for the infrastructure sector and a further easing of the monetary policy. The commission is also expected to help the government promote steps to attract more foreign direct investment into the economy at this time of capital shortage. The government will also be expected to get an opinion from the commission to develop the power reforms agenda further?something that has not been addressed in detail in the latest stimulus package.

Wise counsel

• Stage is set for another stimulus package

• Government data shows economy is slowing

• Minister Kamal Nath hinted at a new package