India to announce 2nd stimulus today - govt sources

The government is likely to announce a second stimulus package later on Friday to help shore up an economy slowing faster than many economists had expected, two officials in the Prime Minister's Office said.

One official, who did not want to be identified, told Reuters that Montek Singh Ahluwalia, deputy head of Planning Commission, would hold a news conference at 6:00 pm to announce details of the package.

In December, Indian authorities cut policy rates, announced $4 billion in extra spending and rolled out a four-percentage point cut in factory gate duties to help lift growth trimmed by the global financial crisis and high borrowing costs at home.

Last month, Trade Minister Kamal Nath said the government was looking at liquidity issues, and more steps to help exporters, the real estate and infrastructure sectors as part of a second package. - Reuters

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PM: global institutions must be representative

India will emerge stronger from the global economic crisis and global institutions must be made more representative of developing nations, Prime Minister Manmohan Singh said on Friday.

In speech to a conference, Singh said the world had become more interdependent and the voice of developing nations must be heard in the high councils of global decision-making.

"Global problems require global solutions. This is the most important lesson of the past century for the present century," Singh said.

"But global institutions of governance must be made more inclusive and representative," he said, according to a text of the speech.

Singh took part in a summit in Washington last weekend with leaders of the Group of 20 nations to discuss how to tackle the crisis which has shaken financial markets worldwide, frozen credit markets and pushed some major economies into recession.

He said the G20 meeting was the first time developing nations' voices had been heard with respect in a global forum and said there was agreement that recourse to protectionism was no remedy.

Indian authorities are struggling to shore up growth against the impact of the global financial crisis and have taken a host of steps including sharp rate cuts to fend off damage to the broader economy.

Singh said the world was in a deep crisis but despite an adverse international environment India had the capacity to sustain a growth rate of about 8 percent.

"We will, through the use of fiscal policies, through the use of monetary policies, through the use of public investment, ensure that the shortage of demand coming as it is from the global slowdown is neutralised to the maximum possible extent," he said.

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An estimate of Indian GDP according to various sources.

India’s GDP growth rate is at 9% in the last financial year. See how things are changing drastically.

RBI:- GDP growth rate for FY09 to 7.5-8%.

Prime Minister's Economic Advisory Council: GDP growth rate for FY09 to 7% from 7.7%.

Morgan Stanley: GDP growth rate for FY09 to 7% from 7.5% and for FY10 to 5.7% from 6.5%.

Goldman Sachs: GDP growth rate for FY09 to 6.7% from 7.5% and for FY10 to 5.8% from 7%. Massive downgrade.

Fitch Ratings: GDP growth rate for FY09 to 6.3% from 7.8% and for FY10 to 6% from 6.8%.

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