Finance minister Pranab Mukherjee on Wednesday said results of the stimuli given to the industry since December 2008 have been ?slow? but there is improvement as shown by growth in crucial sectors like steel, cement and automobile.
Steel production grew 13% in June this year, while the cement output and automobile sales improved 13.1% and 17.4% respectively, he said in his reply to the debate on Budget 2009-10 in Rajya Sabha.
?It (stimulus measures) has started yielding results and I must say it is visible but it is slow,? he said, while stressing that more investment in the infrastructure sector is required.
Mukherjee also said the country was aiming to return to higher growth path as soon as possible. Asia?s third-largest economy expanded 6.7% in 2008-09, sharply slower than around 9% in previous three years, hit by high borrowing costs and global economic crisis. In 2009-10, the government expects 7% growth.
The four stimulus packages given by the government, including the sops in the budget, will have an impact of about Rs 2.18 lakh crore, the minister said. ?In absolute terms, the first three fiscal stimulus packages amounted to Rs 1.86 lakh crore and the fourth one will add an additional sum of Rs 35,000-36,000 crore, totaling Rs 2.18 lakh crore,? Mukherjee said.
The government had announced three stimulus packages in the form of duty cuts to the industry, first in December last year and then in January and February this year.
He also said that the government is ready with a contingency plan if monsoon rains remain below normal and there is no need to panic.