What to expect from second stimulus package
Govt felt the need for a second package as industrial output slipped into negative zone. Gainers: BSE ( A, B ) | NSE | Losers: BSE ( A, B ) | NSE | 52 Week: High, Low
By ET Bureau |
NEW DELHI: The government is set to announce relief measures for housing, automobile and export sectors later on Friday to help them sail through an economic slow down.
The measures the industry expect include duty cuts on select imported items, cheaper housing loans of upto Rs 30 lakh from state run banks and low cost auto loans.
According to officials, a committee of secretaries tasked with suggesting steps to boost the economy met today to give finishing touches to the package that could also include increasing depreciation and ensuring faster disbursal of Cenvat credit for the steel sector.
Government officials said real estate sops were contingent on the slashing of property prices. The government is also looking at safeguards to protect chemical, aluminium and tyre manufacturers against cheap imports, especially from China.
The government has already sacrificed an expected tax receipt of Rs 8,700 crore by cutting excise duty on manufactured items across the board by 4%. It also decided to spend an extra Rs 20,000 crore than what was originally budgeted.
The sops expected on Friday may help the economy to regain some of the steam it lost after growing at about 9% for the past three years.
The country's economy expanded an annual 7.6% in the September quarter. The government expects this year's growth could range between 7%-8%.
The measures the industry expect include duty cuts on select imported items, cheaper housing loans of upto Rs 30 lakh from state run banks and low cost auto loans.
According to officials, a committee of secretaries tasked with suggesting steps to boost the economy met today to give finishing touches to the package that could also include increasing depreciation and ensuring faster disbursal of Cenvat credit for the steel sector.
Government officials said real estate sops were contingent on the slashing of property prices. The government is also looking at safeguards to protect chemical, aluminium and tyre manufacturers against cheap imports, especially from China.
The government has already sacrificed an expected tax receipt of Rs 8,700 crore by cutting excise duty on manufactured items across the board by 4%. It also decided to spend an extra Rs 20,000 crore than what was originally budgeted.
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The sops expected on Friday may help the economy to regain some of the steam it lost after growing at about 9% for the past three years.
The country's economy expanded an annual 7.6% in the September quarter. The government expects this year's growth could range between 7%-8%.
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