First bailout package by Indian Government is announced yesterday amounting to Rs.35000 crores. Package will reduce the prices of cars and other consumer products. Government reduced central Value Added Tax. Package is aimed to give boost to real estate, exports, auto, textiles, other industries and highways. It should help generate jobs in the textiles sector, the largest employer among industries. Reserve Bank had already announced the cut in CRR (Cash Reserve Ratio) and Repo Rate. Further the decision regarding the cut in petrol and diesel prices is likely to be announced soon. Industries also announced that all the tax benefit will be passe3d to consumers. Package is announced by Planning Commission deputy chairman Montek Singh Ahluwalia.
Did the announcement of package indicate that India is also under recession and affected by Global Financial Crisis. It means that in next year the India will be also under big stress like the USA.