Montek Singh rules out another stimulus

The two fiscal stimulus packages announced by the Government in the past two months are enough to boost India's economic growth, Planning Commission deputy chairman Montek Singh Ahluwalia said. "The Government and the RBI are coordinating the efforts and I do not think there is a need for another stimulus package," he added. "The Planning Commission thinks whatever has been done is sufficient." On January 2, Ahluwalia had unveiled a second stimulus plan, including steps to inject capital into banks and finance firms, besides allowing overseas investors to double purchases of debt. On the same day, the RBI cut interest rates for the fourth time since October. The central bank is scheduled to undertake a quarterly review of its annual monetary policy on January 27 in Mumbai. The plan panel's deputy chief has already ruled out any further tax cuts to the industry during the current fiscal year.