Govt. announces Rs.20,000 crore economic stimulus package, India Inc. wants more

"Given the extent of problems that are being faced by the industry, we hope that Sunday's announcement is only part of the total fiscal package and more such measures will be seen in the near future," said Chandrajit Banerjee, director general of Confederation of Indian Industry (CII).

"The package has enough punch to restart the overall economic activity. It also seeks to create additional demand through a cut in Cenvat. It has [also] taken a number of steps to support exports in the face of sagging global demand," said Federation of Indian Chambers of Commerce and Industry (FICCI) secretary general Amit Mitra.

However, all agree that the government's move would steer the economy to high growth track.

"The impetus of the government on infrastructure is good. I think we've always seen for any country to get out of recession a further impetus on infrastructure is good. We are working on those same lines," said Sarang Wadhawan, managing director, Housing Development & Infrastructure Ltd.

India needs $500 billion investment over the 2-3 years on improving its infrastructure including airports, roadways, energy and ports to sustain a 9 percent average annual growth in the economy.

India's economy grew at a robust annual rate of 9 percent or more for the past three years but high borrowing costs, deteriorating demand abroad and paralysis of its lending markets put a brake in the nation's growth pace and global financial groups like Citigroup, JP Morgan, Goldman Sachs, Morgan Stanley and Nomura have lowered their estimates for India's GDP growth over the past one month to 6.5-7.5 percent.