Will the govt's stimulus package work to boost the economy?

	Will the govt's stimulus package work to boost the economy? Created by : Murugesan S, Sr. Associate, Kotak Mahindra \| 12 05 2008 11:45:56 +0000 Industry : Asset ManagementFunctional Area : India(Markets) Keywords : Work Economy Financial Crisis Credit Crunch Economic Downturn Global Crisis Boost Bailout Stimulus Package GOVT'S Activity: 3303 views; last activity : 07 06 2010 20:18:09 +0000 Bailouts, layoffs and cost cutting have become the order of the day in the present scenario of a global financial crisis and an economic slowdown. India too is not immune to it and would be coming out with a bailout package. Govt is finalizing an economic stimulus package of Rs. 75000 crore, do you think this will help or other measures should be taken.... Would like to hear from you guys..... Thanks !!!

Refer 0

Rate :

Yes

Support

Top Argument

I agree with the view that the stimulus package will work for the ecconomy. Inflation has come down to 6.84 % and it is a matter of one or two months for the inflation to touch the desired level of below 5 %. Another round of interest rate cuts is on the cards to stimulate growth especially in the last and crucial quarter of the current financial year. Rupee has shown signs of recovery. Home loan industry has got a boost with the recent package of lower interest rates along with concessions in margin and service charges etc. Above all, a second stimulus package to accelerate growth in vital industries is also on the cards. The positive growth signs are very visible and the stimulus packages will surely act as catalysts for growth.
By veguru vijayakumar babu, Head/VP/GM-Finance/Audit, Sujana Group Of Companies 12 20 2008 06:39:42 +0000

Support | Oppose

Top Argument

There is a need to understand why such stimulus package are required. Credit ,production , demand were working propotionately before economic slowdown leading to inflation .Inflation moving northward requires central bank intervention leading to high cost of credit ,less expansion,less demand .Stimulus packagaes are meant only for sectors where demand has gone down invariably and for companies having high debt debt burden.No such packages can drive the growth of overall economy.It is like giving oxgen to ailed sectors.India need to address its problem of high fiscal deficit which would further increase manifold with such packages and subsidies.Cost ,demand and pricing mechanism needs to be streanghtn to get desired GDP growth of 7% atleast.
By sandeep mehta, Relationship Manager, Idbi Bank Ltd 12 09 2008 07:04:30 +0000

Support | Oppose

Arguments in: "Will the govt's stimulus package work to boost the economy?"


Sort by : Most Recent Top Rated
Support "Yes" edit in rich text ... Submit Cancel Saving ... 1 0 It will improve Gaurav, the government on Sunday has actually unveiled a Rs 30,700-crore fiscal stimulus package which will definitely stimulate investments and demand, government-owned banks are also to announce separate packages for home loans up to Rs 5 lakh and loans between Rs 5 lakh & Rs 20 lakh, we will have cheaper home loans which will boost real estate industry, which would in turn drive demand for cement & steel. This will definitely improve condition..... By Rajat Agarwal, Associate, ING \| 12 08 2008 08:10:30 +0000 Edit \| Delete Support \| Oppose 1 0 India needs a big push in this situation & govt is doing right thing by coming out with such a package. In India there is a desperate demand for more infrastructure, roads etc & putting money into infrastructure will get the economy moving...... By Murugesan S, Sr. Associate, Kotak Mahindra \| 12 05 2008 11:49:28 +0000 Edit \| Delete Support \| Oppose	Support "No" edit in rich text ... Submit Cancel Saving ... 0 0 Its not in the hand of Indian Government only. Our economy will never grow in isolation. If UK, USA and other countries are bleeding, eventhough our government offers such lucrative stimulas package, Things will not improve significantly. By Kaushal , Sales/BD Manager, Kotak Life Insurance \| 02 15 2009 13:42:26 +0000 Edit \| Delete Support \| Oppose 0 0 its true that we need to understand wy such stinulus packagees are required? i personally dont think that these packages will help any boost in economy, our goverment is exacltly doing what us govt did when their major companies bow down and they have to support them. but instead of launching these packages indian govt need to think deeply that what they are supporting, whatever the govt is doing right now is to support liquidity in the market and they think thats the way to boost economy but my opinion here is where is the demand? and can u increase demand by bailout packages? the inflation we are talking about is that it has come down but in what espect? inflation is still there its just the fact that we took minimal things to decides inflation.. By manoj prasad, CONCULTANT- Review & Management, PRATHAM \| 01 19 2009 11:50:40 +0000 Edit \| Delete Support \| Oppose 0 0 Those factors might be there Rajat but they are marginal in effect where we need a complete turnaround. I am also skeptical about the government's ability to boost spending in the remaining months, given its preoccupation with elections. The government might implement additional measures in the coming weeks but my concerns is that from the time of the announcement of the next election date and the formation of the new government, major fiscal policy change will not be possible under the Election Commission rules. This period could be as long as 3-4 months and could rule out any significant counter-cyclical measure in the first quarter of 2009..... By Gaurav Bhattacharya, Sr. Associate, HDFC Bank \| 12 08 2008 10:23:40 +0000 Edit \| Delete Support \| Oppose 0 0 When the bankers are unwilling to provide loans to infrastructure, real estate and exporters it shows that the bankers believe these industries would not possess the capability to return these loans. This perhaps may be true due the downturn in housing as well market for exporting companies. Therefore the Government can take care of the supply side by giving subsidies and sops, however demand side is market driven and unless that improves, the situation still looks gloom.... By Gaurav Bhattacharya, Sr. Associate, HDFC Bank \| 12 05 2008 12:33:38 +0000 Edit \| Delete Support \| Oppose 1 0 Murugesan, still for the private banks liquidity is a concern and they can't reduce lending rates which makes life difficult for the average home loan seeker or car buyer. There is still no relief for them & RBI should do more to ease up things...... By Satyanarayana Naidu, Sr. Associate, IDBI Bank \| 12 05 2008 11:59:43 +0000 Edit \| Delete Support \| Oppose
Argue for "Yes"	Argue for "No"
Prev1NextShowing 1 - 5 of 6

Found the debate "Will the govt's stimulus package work to boost the economy?" interesting ? Suggest to your connections and communities

The Art of Placements

Looking for Management Consultant/Manager/Senior Manager, One of the top consulting firm, Mumbai

Executive Ad Sales, Media Company, Mumbai

Viewers also viewed

	Is High population a boon or bane for the economy?
	We all know that India has too many people and this is bad for our economic well-being . Mention...
	608 referals 26 arguments, 9735 views

	Is our PM leading the most corrupt govt in Indian history?
	Is our PM leading the most corrupt govt in Indian history?
	1405 referals 112 arguments, 1887 views

	Global Crisis Makes U.N. Reform Imperative
	Reinventing the United Nations is crucial to protect the poorest inhabitants of the planet, at a...
	188 referals 5 comments, 197 views

Retail stores on wheels - will it work in India?

Survival Tactics

should students work without salary in companies in traning after getting a campus placement?

more...

Full name*:
Email address*:
New password*:
	Sign Up or Log In
By clicking 'Sign Up' above you are agreeing to the Terms of Service and Privacy Policy of TooStep

Finance & Accounts |

Banking & Insurance Professionals |

India's Knowledge Process Outsourcing (KPO) industry |

ICICI Bank |

Trading in Commodities |

Trading in Forex |

Effective risk management in financial services |

Financial Asset management |

Credit Risk Management |

Sultans of NSE |

HDFC Bank |

The Impact of Micro and Macro Cultures in a Global Economy |

Citibank |

New dynamics of managing corporate portfolio |

Debt Financing |

Capital Markets |

Retail Banking |

HSBC Bank |

Micro finance and sustainable development |

Institute of Chartered Accountants of India |

IIM Ahmedabad |

Narsee Monjee Institute of Management Studies, Mumbai (NMIMS) |

XLRI Jamshedpur |

IIM Calcutta |

Life Insurance Corporation of India |

Indian Institute of Foreign Trade, Delhi (IIFT) |

Axis Bank |

ICICI GROUP |

Stock Brokers |

American Express Bank |

IIM Kozhikode |

Reliance Life Insurance |

Institute of Cost and Works Accountants of India |

Standard Chartered Bank |

ABN Amro Bank India |

IIM Lucknow |

HDFC Standard Life Insurance |

Yes Bank |

Dena Bank |

Welingkar Institute of Management Development and Research |

ISB Hyderabad |

Canara Bank |

Bankers |

Max New York Life Insurance |

Kotak Mahindra Bank |

Royal Bank of Scotland |

Deutsche Bank |

Kotak Mahindra Capital Company |

Tata AIG Insurance |

Reliance Money |

HSBC |

Om Kotak Mahindra Life Insurance |

SBI Life Insurance |

Jamnalal Bajaj Institute of Management Studies, Mumbai (JBIMS) |

Predict the news |

Sharekhan securities |

Citifinancial Consumer Finance India Ltd |

KJ Somaiya Institute of Management Studies and Research, Mumbai |

Institute of Rural Management, Anand (IRMA) |

XLRI |

Institute of Finance & International Management, Bangalore (IFIM)

Will the govt's stimulus package work to boost the economy?