Highlights of India's fiscal stimulus package

NEW DELHI: The following are the highlights of the fiscal stimulus package unveiled by the government on Sunday to contain the impact of global financial crisis on the Indian economy:

- Plan, non-plan expenditure of Rs.300,000 crore (Rs.3,000 billion/$60 billion) in four months

- Parliament nod to be sought for Rs.20,000 crore more toward plan expenditure

- Across-the-board cut of four percent in the ad valorem central value-added tax

- Interest subvention of two percent on export credit for labour intensive sectors

- Additional allocations for export incentive schemes

- Full refund of service tax paid by exporters to foreign agents

- Incentives for loans on housing for up to Rs.500,000, and up to Rs.2 million

- Limits under the credit guarantee scheme for small enterprises doubled

- Lock-in period for loans to small firms under credit guarantee scheme reduced

- India Infrastructure Finance Co allowed to raise Rs.100 billion through tax-free bonds

- Norms for government departments to replace vehicles relaxed

- Import duty on naphtha for use by the power sector is being reduced to zero

- Export duty on iron ore fines eliminated

- Export duty on lumps for steel industry reduced to five percent