Govt offers stimulus package for growth
The Union government has announced a Rs31,900 crore stimulus package so as to lift consumer demand and counter the slowing economic growth.
The package includes a 4% reduction in excise duties, selective interest subsidies on borrowing by exporters and a boost to infrastructure investments. The intention was to support the monetary policy measures taken by the Reserve Bank of India (RBI), which cut key interest rates by one percentage point.
The excise duty cut would cover most products and also cover consumer durables such as cars as well as intermediate products such as cement. If producers pass on the duty cuts to buyers, it would also lower sticker prices.
In addition to the measures announced by RBI and the government, it is likely that public sector banks would soon announce measures to support individuals who take home loans of up to Rs20 lakh.