Fresh stimulus package will boost growth and stabilise economy: CII

New Delhi: Industry body CII on Sunday said the multi-sectoral and multi-dimensional policy stimulus announced last week will have significant impact, imparting stability and underpinning a new growth impetus for India.

CII said the measures announced come at a time when the world economy is buffeted by global headwinds and trade slowdown.

"Coming in the wake of several retaliatory and counter-retaliatory trade measures between the two largest global trading nations, the economic package announced by Nirmala Sitharaman, Minister of Finance and Corporate Affairs, on Friday imparts stability and underpins a new growth impetus for India," it added.

CII President Vikram Kirloskar said the macro impact of the economic package announced can be expected to be significant.

"It is indeed commendable that all these multi-sectoral steps were carried out without pressure on the fiscal deficit. With her six-dimensional announcement, FM has indeed hit a sixer out of the grounds," he added.

The industry body said it expects that the economy will climb up in the coming months.

CII's Business Outlook Survey for April-June 2019 stood at 59.6, lower than 65.2 in the previous quarter. It showed that as of June, two-thirds of survey respondents expected growth of over 6.5 per cent for 2019-20.

"The comprehensive measures removing enhanced surcharge on FPIs (foreign portfolio investors) and DIs (domestic investors), securing transmission of lower repo rates, addressing delayed payments and ensuring that bank officials are confident about lending are strategically targeted towards raising investments," CII President-Designate Uday Kotak said.

Creation of a shelf of infrastructure projects and announcement of a long-term financial institution have wide positive ramifications for the economy, he said adding that the industry is looking forward to more such announcements from the finance minister as mentioned by her in speech on Friday.