'Govt to announce third stimulus package'

New Delhi, Jan 19: To raise the economy, Government is considering another stimulus package, declared Commerce Minister Kamal Nath on Monday, Jan 19. He also hoped that India will grow by at least 7 per cent this fiscal year.

Minister was addressing the 'Partnership Summit 2009' of the Confederation of Indian Industry (CII) in New Delhi. The falling inflation rate at over 5 per cent would help unveil another stimulus package, Kamal Nath expressed.

"More stimulus measures may happen after Jan 31," Kamal Nath told reporters. The package would be announced after the Central bank reviews its monetary policy later this month. "One of our biggest problems was inflation and this has now been addressed. The latest data shows inflation at 5.2 percent. It will come down further," he said, adding: "We will also grow at 7 percent this year."

It can be recalled here that due to global slump, govt had announced a major stimulus package to help Indian industry in December 2008. Kamal Nath optimistically told that India will continue to be a magnet for foreign direct investment. Though global recession has hit the major countries in the world, India has continued to attract foreign direct investment like never before. Foreign inflows had doubled $ 18.7 billion during the nine month period which ended on Dec 31.

OneIndia News (With inputs from Agencies)