Farm focus could help demand

The government could also focus upon investing in agricultural infrastructure and push banks to do more, advised experts at an interactive session here in Kolkata organised by Federation Of Small and Medium Industries (FOSMI).

Abhirup Sarkar, professor of Indian Statistical Institute (ISI), said, "The government can focus upon investing in agricultural infrastructure apart from the relief packages which is already being injected into the economy. Monitoring of banks is all the more required. However, there is no idea about when the recession will get over."

Investing in agricultural infrastructure would increase demand and productivity in the longer term.

Domestic demand had to be increased but there was no guarantee that packages offered now would generate demand in the economy, since the general perception now was to save rather than invest, added Sarkar.

Recession had hit the small and medium enterprises (SMEs) severely and some measures taken by the government would help the sector, claimed Sarkar.