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This is an archive article published on December 24, 2008

Govt considering further stimulus: Nath

Kamal Nath said govt was looking at possible duty cuts for more goods to stimulate demand.

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India is considering another stimulus package to lift slowing growth, which may include steps to ease liquidity and relief measures for export and housing sectors, the trade minister said on Wednesday.

Kamal Nath also said the government was looking at possible duty cuts for more goods to stimulate demand in the economy.

8220;We are looking at financial, some liquidity issues, export, and something to stimulate demand. Realty also,8221; he said.

Indian policy makers have slashed rates and cut duties to shore up growth in Asia8217;s third-largest economy, which has been slowing faster than expected due to high interest rates and the global financial crisis.

Last week, the government asked parliament for 424.8 billion rupees 8.8 billion in extra spending for the fiscal year ending in March, and the deputy chairman of India8217;s plan panel said there may be a need for more fiscal stimulus.

India8217;s economy expanded an annual 7.6 per cent in the September quarter, and the government said on Tuesday growth could range between 7-8 per cent in the 2008/09 fiscal year, lower than 9 per cent last year.

 

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