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Q.

If stimulus package is withdrawn after next beget what will it mean to the Indian economy?

Asked by Good Citizen, 19 Feb '10 12:31 pm
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Answers (6)

 
1.

I am not an economist, nor an expert in finance management of the government. I however try to project my feelings. Liquidity crisis or Sub Prime Crisis occurred in USA and other European countries. How did it affect Indian economy in the year 2008 which forced Indian Government to sanction stimulus package in line with what Obama did in USA.I am unable to understand it. Can anyone help me ?

Is it true that export proceeds of goods exported to USA or any other countries were stopped by importing countries?

If not how did it result in liquidity crisis? When foreign countries stops import , real problem may arise in selling exportable goods in domestic market.

If export proceeds were really stopped by importing nations like USA, government could have been justified in sanctioning financial package for such affected exporters or manufacturers, but not justified in allowing benefit to all.

CRR and SLR were reduced to release liquidity for banks. Is it justified to provide such ...more
Answered by Danendra Jain, 19 Feb '10 09:22 pm

 
  
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2.

Lets see what package you are talking about :
# An SPV will be designated to provide liquidity support against investment grade paper to Non Banking Finance Companies (NBFCs) fulfilling certain conditions. The scale of liquidity potentially available through this window is Rs.25,000 crores.

# An arrangement will be worked out with leading Public Sector Banks to provide a line of credit to NBFCs specifically for purchase of commercial vehicles.

# Credit targets of Public Sector Banks are being revised upward to reflect the needs of the economy. Government will closely monitor, on a fortnightly basis, the provision of sectoral credit by public sector banks.

# Special monthly meetings of State Level Bankers Committees would be held to oversee the resolution of credit issues of micro, small and medium enterprises by banks. Department of MSME and Department of Financial Services will jointly set up a Cell to monitor progress on this front.

# Recently the guarantee cover under C ...more
Answered by Mohammed asim nehal, 20 Feb '10 03:57 pm

 
  
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3.

Mr,Citizen, you are referring to the Union Finance Minister's dilemma, With a view to migating the impact of the global financial crisis which had engulfed almost all sectors of the economy, two stimulus packages were put in place, first in December 2008 and the second in January 2009, Coupled with the stimulus packages by way of huge cuts in excise duty and service tax, aimed at propping ip consumer demand and keeping the wheels of industry moving so as to pre-rmpt job cuts , the RBI pumped in adequate loquidity by lowering its key policy rates, So when last years budget was presented, the economy had already started showing green shoots of recovery in key sectors such as steel, cement, auto and consumer goods, In all, the overall stimulus of nearly 2,18,000 crore to the economy made thru all the stimulus packages have paid off, All this brings the Finance Minister to the biggest challenge while presenting the budget for the new fiscal, To adhere to his own budgetary target of bri ...more
Answered by thampy chacko, 19 Feb '10 03:21 pm

 
  
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4.

It means the economy does not need crutches and it can run on its own. That is good news and tax payers money could be better utilized for the welfare of the people.
Answered by Tony Fernandez, 19 Feb '10 01:01 pm

 
  
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5.

It may affect
Answered by anil garg, 06 Dec '11 08:56 pm

 
  
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6.

Kee pharak pehenda pappe...pehle toh daal chawal khakke jee sakta tha...abhi toh ghas poos bhi mehnga ho gaya
Answered by rameshka, 19 Feb '10 12:36 pm

 
  
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