RTTNews - The Indian government is likely to announce more stimulus measures in the union budget on July 6, to stimulate domestic demand, reported the PTI quoting Dun & Bradstreet ( B&D). The think tank anticipates that the RBI will not slash interest rates in the near future as the rates are already at a lower level and due to some possible inflationary threats.

D&B is of the view that in the near future, weakness in exports and moderate growth in domestic manufacturing activity will continue to weigh on overall domestic economic activity. However, the agency noted that the IIP numbers is back on a positive track, with signs of recovery in factory output in the second half of 2009-10. It further said that there is a need for caution as a recovery of economic activity depends on a continuous improvement in the manufacturing sector that in turn is dependent on domestic demand.

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