Indian industry needs no stimulus: Rangarajan
10 Aug 2011
Indian industry will come unscathed from any possible financial market crisis following the downgrade of US credit rating by Standard and Poor's, C Rangarajan, chairman of the Prime Minister's Economic Advisory Council (PMEAC), said today.
There is no need for any stimulus package to help the industry tide over the impact of the US developments or the crisis in Europe, he said.
"I don't think industry needs any fiscal stimulus," agency reports quoted Rangarajan as saying.
Rangarajan had, on Monday, said that he expected the Reserve Bank of India (RBI) to ease its tight money policy, as and when inflation eases with a global slowdown.
He said the impact of a slowdown in industrialised countries could bring commodity prices under pressure.
High inflation, which is a major challenge for the Indian economy in the short-term, is likely to come down, as the weak global economic situation will bring commodity prices under pressure, he had said.
