Economic growth figures for the present financial year that will be released around May will give the actual scenario to the government to take the decision whether they can roll back the package. This was stated by Pronab Sen, the chief statistician.
However robust industrial growth figures do show that the government might be considering withdrawal of these steps, Sen told media in New Delhi.
Industry growth has been seen to be increasing in recent months, thus spiking recommendation from RBI and other analysts for rolling back the stimulus measures partially. The stimulus package was introduced in order to combat the effect of worldwide economic slowdown last year.
Sen, who is the secretary, ministry of statistics and programme implementation, said that the industrial growth numbers offered supply side story but does not comment if there is adequate demand to absorb the supply or simply inventories are being piled up.
Sen mentioned that it is left to finance minister Pranab Mukherjee to decide in the forthcoming Budget on stimulus steps, based on either industrial growth figures or economic growth numbers.
Industrial growth for November was reported to be 11.7% as compared to mere 2.5% a year ago. In the initial 8 months, industrial production went up by 7.6% as compared to 4.1% a year back.
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