Stressing fiscal responsibility on the part of the government, industry body Confederation of Indian Industry (CII) has said more stimulus packages will affect the economy adversely rather than help it.
"Any more stimulus package will create problems. We are not asking for a fiscal package," President of the CII Venu Srinivasan told PTI.
Srinivasan, who took over as CII President last week, said the Indian economy remained stable despite serious problems in most of the developed world. "We have stabilised at six per cent growth, which is not bad given the world economic situation... I don't think the government should artificially stimulate it to 8-9 per cent," he said.
Srinivasan, who heads TVS Motor Company, the country's third-largest motorcycle maker, said it is time the government got back to fiscal responsibility and bring down the budget deficit.
With the deepening global financial crisis crippling industrial production, the government not only lost tax revenue but also had to give three stimulus packages in the fiscal 2008-09. As a result, the fiscal deficit ballooned to six per cent of GDP against the target of a mere 2.5 per cent.