Reserve Bank should take steps to boost economy: Kamal NathFebruary 6th, 2009 - 4:21 pm ICT by IANS
New Delhi, Feb 6 (IANS) Reserve Bank of India (RBI) should take calibrated measures to boost the economy, Commerce Minister Kamal Nath said here Friday, adding that the third stimulus package was still under formulation.“Some sectors are in difficulty, the RBI should take measures but the government also has limitations, we are still looking at formulating the new stimulus package,” Kamal Nath told reporters after meeting with a Finnish business delegation.
On China’s threat of taking India to the World Trade Organisation (WTO) for banning Chinese toy imports, the minister said India’s decision was in full compliance with the WTO.
“This is a matter of public concern than commercial. We have good trade relations with China,” he said.
Regarding the US decision that only goods manufactured in the US should be consumed by US citizens Nath said: “This protectionism is not good for the world economy.”
Kamal Nath was also hopeful that the deliberations with the Finnish business delegation would help take forward India’s trade agreement with that nation.
“The discussion was useful and we are optimistic about our trade relations with Finland,” he said.
“We will be moving at a pace the European Union wants us to move. Both the countries agreed to this especially at the time of economic downturn. It is extremely important to abide by the WTO agreement.”
Finnish Minister for Foreign Trade and Investments Paavo Vayrynen said India and Finland have “strong economic engagement”, and added: “Some very important Finnish companies are here for business promotion. Our investments in India have grown to $1.16 billion.”
Fourteen Indian companies have invested in Finland over past four years.
Vayrynen admitted that the Finnish economy has been weakened by the slowdown, but said that at the same time, “it is important for trade partnership with India as it is growing”.
“We have excellent flight connection from Delhi and Mumbai to Helsinki. We are looking at other destinations as well,” he said.