Stimulus not sufficient to boost growth: economists

It's not just industrialists, but even leading economists feel that the twin packages announced by the government and Reserve Bank of India (RBI) to boost sagging economy is 'insufficient', as the farm sector's concerns were not been addressed to.

"This (stimulus package) is in the right direction, but not sufficient," economic think-tank ICRIER's Director Rajiv Kumar told PTI when asked whether the steps announced by the government and RBI on Friday would be able to revive industry and exports.

"There is no talk about agriculture. It has been completely left out," he further said.

Although the government had raised the public expenditure during 2008-09 by Rs 1.47 lakh crore, over and above the allocations made in the budget for the fiscal, questions are being raised about the ability of the government to spend additional funds during the remaining three months.

Echoing similar view, RIS Director-General Nagesh Kumar said, "The economy need a much bigger stimulus and I expect more measures... An employment guarantee scheme is needed. The size of the package should be increased."

Expressing dissatisfaction at the second stimulus package, President of Federation of Indian Export Organisations (FIEO) A Sakthivel said, "We find no serious consideration (of exporters' demands) except extension of the DEPB scheme."

In order to reverse the economic slowdown, the government on Friday came up with a second stimulus package seeking to raise public spending and making available easier credit for sectors like exports, housing and small industries.

Simultaneously, RBI also slashed key policy rates and ratios to pump in an additional Rs 20,000 crore into the banking system, in addition to signalling a soft interest rate regime.