Stimulus measures to have effect from April-May: Pronab Sen

April 12, 2009 7:44 am 

NEW DELHI, April 11 — With stimulus packages failing to spur industrial production, Chief Statistician to the Government Pronab Sen today said the fiscal measures will have start having an impact on industry from April-May onwards.

In an interview to PTI, Sen also attributed the fall in industrial production in February largely to negative growth in consumer non-durable goods, particularly sugar.

"Stimulus packages will start having an effect from April-May onwards," said Sen, who is also Secretary to the Ministry of Statistics and Programme Implementation.

Sen said tax cuts will have much quicker effects, but expenditure measures take some time to produce results.

The Government has so far announced three stimulus packages in which excise duty was cut by six percent and service tax by two percent, planned expenditure was raised, infrastructure re-finance company IIFCL was allowed to mobilize resources through tax-free bonds, and so on.

However, despite these measures, industrial production is not showing any perceptible improvement.

In February, industrial growth again turned negative as factory output declined to a 15-year low of 1.2 percent.

"(The) main reason for (the) negative number in February IIP (Index of Industrial Production) is that… We saw negative numbers for consumer non-durables and this is coming largely from sugar," Sen said. (PNA/PTI)

LGI/rsm

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