In the wake of the devastating terrorist atacks in Mumbai last month, India has decided to unveil its own stimulus package to encourage its ailing economy. Steps taken by the government would increase liquidity within the banking sectors, and include a 4% cut in the ad volorem Excise Tax.
The 4% excise tax cut would include all products, but not including petroleum. In efforts to increase sales in the export sector, the government would create credits for exports such as textiles, jewelery, fine gems, and marine products. All of the aforementioned products would have an interest subvention by 2% until March of 2009.
The indian government also cleared way for the implementation of the public private partnership scheme with building of numerous infrastructure projects.
In regards to the stimulus package the Ministry of Finance said:
In the wake of the devastating terrorist atacks in Mumbai last month, India has decided to unveil its own stimulus package to encourage its ailing economy. Steps taken by the government would increase liquidity within the banking sectors, and include a 4% cut in the ad volorem Excise Tax.
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