The country's economy is strong enough to generate resources to counter the economic challenges, but the Centre should take "strong and creative" setps to boost the demand in the upcoming budget, a professor said on Tuesday.
Underlining the challenges of the economy, Delhi University's associate professor of commerce, Alok Puranik said the "weak demand environment across the sectors" is impacting the financial health of businesses.
"The interest rate cuts alone will not boost the demand," he said in an interactive session organised by MCCI here.
RBI had eased interest rates but the demand in many sectors has not picked up, he said.
The Centre should take some steps in the budget to provide some extra purchasing power particularly middle class, lower middle class people and farmers of the nation, the statement quoted him as saying.
Effective implementation of Kisan Samman Nidhi, which gives Rs 6,000 to a farmer family, may lead to strengthening of demand of many businesses, he said.