Fearing further moderation in economic growth in the next fiscal, the government on Friday said it would take more steps to boost the labour-intensive sectors.

"As next year's outlook is more downbeat. . . the government will take further steps to ensure that the labour-intensive sectors are less adversely affected," External Affairs Minister Pranab Mukherjee, who is currently holding charge of the finance portfolio, said while addressing a conference on financial crisis.

He further said despite the global economic downturn, India's economy is expected to grow at 7 per cent in 2008-09, after recording an average growth rate of 9 per cent for the last five years.

The government, the minister pointed out, has already taken a 'number of measures to inject liquidity, bring down the cost of borrowing and stimulate demand'.

Referring to the need of a regional mechanism to prevent deepening of the crisis, the minister said, "We, in Asia, have the capacity to undertake significant counter-cyclical steps to drive the economy forward on the strength of domestic demand."