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India announces economic stimulus to boost demand by $10 billion

Christian Fernsby |
India on Monday announced steps to stimulate consumer demand, including advance payment of a part of the wages of federal government employees during the festival season.

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Topics: INDIA   

The government will allow its employees to spend tax-exempt travel allowances on goods and services, Nirmala Sitharaman, India’s finance minister told a news briefing.

She said the government will also shore up investment by spending extra 250 billion rupees ($3.41 billion)on roads, ports and defence projects, and offering 120 billion rupees in interest free 50 year loans to state governments for spending on infrastructure before March 31,2021.

“All these measures are likely to create an additional demand of 730 billion rupees ($9.96 billion),” Sitharaman said, adding the proposals would stimulate demand in a “fiscally prudent way.”

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