Speaking to Financial Express newspaper, the PM said that the letter from the managing director of IMF states that the stimulus planned for 2009 by major economies amounts to 2 per cent of (world) GDP.
The capital resource withdrawal from developing countries by banks is worrisome, he said. Stating that India's present stimulus package is inadequate, he said, "With the decline of inflation there is added manoeuvrability in the use of monetary policy which will be utilised when and where it becomes necessary."
"Our growth rate has been affected; we were having a growth rate of 9 per cent until 2007/8, (from when) the growth rate has come down to 7 per cent and maybe lower than that," he said.
"We have taken measures. Our fiscal deficit has gone up substantially. We have deliberately allowed it to go up to provide stimulus as a substitute for the decline of exports, for the decline of international capital," Manmohan Singh said.