Govt to exit stimulus packages next year: PM

Prime Minister Dr Manmohan singh said the worst for the economy was behind us and thatIndia was seeing signs of an upturn. “India is likely to grow at 6.5% in FY10,” Dr Singh, a renowned economist himself, said, adding that for the following fiscal year, the country could see a growth of 7% if the monsoon is normal.

The PM, speaking at the India Economic Summit, said his aim was to deliver rapid and inclusive growth and that India was open to both trade and investment. His talk was also laced with emphasis on reforms and the need to improve policies and continue on the reforms path.

Outlining his government’s priorities with regards to its economic policies, Dr Singh said there was a need to increase government expenditure in health and education. “We need to simplify and rationalize policies to encourage investment. The futures market needs to be deepened,” he said. “India today is better positioned to push through reforms. Foreign investors today are welcome to participate in the country.”

Stake sales in public sector undertakings (PSUs) may see faster progress, the PM said. He also outlined the government’s exit from the stimulus packages saying they would be from next year.

Speaking on the sidelines of the G20 summit, Finance Minister ruled out any further stimulus measures. "The economy is on the path of recovery. We will decide what type of exit we should accept. There are two questions here. One, whether there is going to be any stimulus package? I have indicated earlier that there is no stimulus package. Second, whether the fiscal concessions, tax concessions which we have given will continue or not. My response is they will be continued till they are withdrawn."