India Govt. announces measures to boost economic growth

Full exemption from basic customs duty on zinc and ferro alloys, which was also provided to contain inflation, is also being withdrawn, the government said.

To boost the housing sector, the government said it would work with state governments to encourage them to release land for low income and middle-income housing schemes.

Looking forward, the government said it "does not envisage any further measures in the current fiscal year."

However, it added that it "is aware that the measures required to provide an economic stimulus to the economy have to extend beyond the current financial year."

"The measures announced so far are adequate enough to achieve 7 percent growth" in the year ending March, Montek Singh Ahluwalia, the deputy chairman of the panel, which draws up economic roadmaps, told reporters in New Delhi after he announced the stimulus package. "The measures that the government has taken will ensure that we still have good growth in the country."

"These measures will make the new year happier. The key is if the ministries can implement and spend what they have been allocated, it would be more than enough to stimulate growth," Ahluwalia said.