Indian industry pushes for more relief as economy slows down

According to a senior policy adviser, India's slowing economy still has room for additional fiscal and monetary policy measures to spur growth in the the present downturn.

The government has over the past few months already introduced a slew of measures including interest rate cuts, cuts in factory gate dutes, increased spending in the face of high borrowing costs and the global downturn.

Policy makers are optimistic about the Indian economy's capacity to sustain growth despite the market conditions and project a 7-per cent growth even amidst fears of  a difficult 2008-09 fiscal.

However, the growth rate will be lower than the 9 per cent growth rate registered over the last three years.

Though the Indian industry has generally welcomed the government's initiatives, it wants the government to do more and is lobbying for further cuts in rates and taxes.

Exporters are especially badly hit with the steep drop in overseas sales.