'Substantial' stimulus package planned to prop economy

The prime minister will announce a "substantial" stimulus package for exporters to revive a sagging economy.

The prime minister will announce a "substantial" stimulus package for exporters on Saturday to revive a sagging economy, Commerce and Industry Minister Kamal Nath said in New Delhi on Friday.

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“Lowering interest rates and an interest subsidy on bank loans to exporters could form part of a stimulus package, which is likely to be announced by the government and the Reserve Bank on Saturday,” Kamal Nath told reporters.

“This will not be a single package. This the first part, the second and third parts will follow,” he said.

Added Commerce Secretary Gopal Krishna Pillai: “There is a need to create demand in construction, infrastructure services and exports."

Pillai said to boost exports, the government was looking at countries where there is no liquidity crunch, as well as focussing on greater export credit guarantee.