India needs proactive monetary policy: Economist

December 17th, 2008 - 8:32 pm ICT by IANS  

New Delhi, Dec 17 (IANS) India should have a more proactive monetary policy to deal with the economic downturn, a top economist said here Wednesday.”The monetary policy should be more aggressive and proactive,” the chief economic advisor to the government, Arvind Virmani, told reporters here after a business meet.

“Economic slowdown is affecting the corporate sector, which is highly globalised,” he said, adding that there is an urgent need to bail out the infrastructure sector.

“Companies have begun revising their economic forecast on a monthly basis as there is a lot of insecurity in the economy,” Virmani said.

According to Deepak Das Gupta, the World Bank’s lead economist in New Delhi, India’s growth rate would dip sharply in 2009-10 but would start reviving from the following fiscal.

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