Click to play videoNew Delhi: A Rs 75,000 crore booster shot for the Indian economy is what the Government is estimated to shell out in phases to maintain growth and bail out sectors hit hard by the global recession.
Commerce Minister Kamal Nath said, "The Government is looking at an ecomomic stimulus package and this will not be just one package. There will be a first part of it and a second part of it."
Out of the Rs 75,000 crore, about Rs 2,000 crore -- in the form of credit lines and subsidy on bank loans -- will go to exporters, who have borne the brunt of the global economic slowdown.
A cut in excise duty on commercial vehicles is also on the cards. This will benefit automakers whose sales have dipped more than 50 per cent over the past few months, thanks to the financial crunch and high interest rates.
A Rs 15,000 crore budgetary support is also expected for infrastructure projects.
But the question is, where will the money come from and does the Indian industry really need a life support?
Kotak Securities Head Research, Sanjeev Prasad said, "I don't think the Government needs to out too much money over here. Instead they need to provide confidence to the indsutry. There is enough money available to the market for investment to sustain."
Consumers also have something to look forward to. The RBI is likely to cut interest rates on Saturday, which will mean cheaper home and auto loans. With the Government cutting fuel prices, this could be a weekend to remember.
(For updates you can share with your friends, follow IBNLive on Facebook, Twitter, Google+ and Pinterest)
More on IBNLive Right Now
TOP NEWS
MOST SHARED
PHOTOGALLERY
