The union government has announced Rs 30,700-crore package to propel economic growth of country. The move is aimed to increase local demand in various economic segments including housing, automobile, export and various labor incentive industries.

The package came just a day after revision of key interest rates by reserve bank. It would help to mitigate the impact of global slowdown on Indian economy.

The relief package includes Rs 20,000 crore in additional expenditure, 4% excise duty cut and Rs 2,000 crore package for exporters. Government would increase spending on public infrastructure projects and ensure speedy completion of new and ongoing projects with the help of public-private partnership. It would take measures to spend budgeted expenditure of Rs 300,000 crore over the next four months of the current fiscal to end-March 2009.
 
The chairman of planning commission, Montek Singh Ahluwalia said that government would take all necessary steps to ensure stable economic growth. He said that government is committed to take all possible measures to decrease fiscal deficit above its budgeted target. Government has revised three major tax slabs of central excise duty from 14%, 12% and 8% to 10%, 8% and 4% respectively. Dr. Ahluwalia hoped that industry would share benefits of duty cut with customers.