India Government'S $60 Billion Revitalization Of Its Economic Programme

The government of India announced a revitalization programme of 3 trillion rupees (about US $60 billion), including the reduction of VAT to reduce prices, stimulate consumption, allocate funds to stimulate textile and export industries and so on, and promised to take more measures to cope with it.

According to the "Central News Agency" report, the plan is expected to be implemented in the last four months of the current financial year ending in the end of March next year (2008-2009).

Indian Finance Ministry officials said that the chief minister of finance, Minister General Mohan, and P. Chidambaram, who had only been pferred to the Ministry of interior, recently approved the plan.

According to the statement of the Ministry of finance, the government is concerned about the impact of the global financial crisis on India's economy and decides to take some countermeasures.

The Reserve Bank of India (central bank) announced on 6 that it would cut interest rates on bank loans to help businesses reduce borrowing costs.

According to the statement, the $60 billion revitalization of the economic programme includes a comprehensive reduction of 4% of the central value-added tax to stimulate consumption, and an increase in funding to expand the scope of credit for such industries as exports, real estate, textiles and infrastructure.

In addition, the Manmohan administration will also request additional 200 billion rupees (about US $4 billion) for additional support after the resumption of the 10 session of Parliament this month.

According to the statement, incentives should also be implemented in the next fiscal year from 2009 to 2010.

Yang Jing: editor in charge