India Inc cheers stimulus package; wants more

India Inc today cheered the mega stimulus package announced by the government, saying the duty cuts and other sectoral incentives would help generate demand through lowering of prices for consumers and overseas markets.

As an immediate reaction to the package conceived by Prime Minister Manmohan Singh, who is also holding Finance portfolio, major auto companies including the market leader Maruti announced to cut prices by four per cent to pass on the tax benefits to the customers.

The realty players, including DLF and Unitech said the measures would have a good impact, particularly in the non-metros by way of a demand-boost for houses, but felt that the package for home loans by banks should have been for borrowings up to Rs 50 lakh instead of the prescribed limit of Rs 20 lakh.

The apex chambers of commerce and industry, however, felt that incentives for the infrastructure projects as also the auto sector, should have been more.

FICCI's Secretary General Amit Mitra said: "The package has enough punch to restart the overall economic activity through its massive Rs 3,00,000 crore in balance four months of the fiscal.... It also seeks to create additional demand through a cut in Cenvat.... It has taken a number of steps to support exports in the face of sagging global demand."

"The most important point is proper usage of the stimulus package," CII Director-General Chandrajit Bannerjee said.

Unsatisfied by 'Rs 20,000 crore emergent package', Assocham President Sajjan Jindal said: "The industry was anticipating the demand booster package of Rs 70,000 crore." However, he hoped that the government would take more drastic measures to create the demand and ensure that the economy bounces back to its previous growth speed.