These stimulus packages came on top of an already announced expanded safety-net programme for the rural poor, the farm loan waiver package and payout following the Sixth Pay Commission report, all of which too added to stimulating demand.
As the monetary and fiscal stimuli work their way through, and if calm and confidence are restored in the global markets, we can see economic turn around later this year. After averaging nine per cent growth over the last four years, economic activity in India has slowed since the last quarter of 2008. The outcomes in recent months have been mixed.