During the week ended November 29, the headline inflation, while continuing its southward journey, fell further to 8% from 8.4%.

Earlier it was displayed by a poll that the annual inflation rate was expected to have fallen to its lowest in eight months in late November, following a decline in the prices of manufactured products and lower fuel prices.

As compared with 8.4 per cent a week before, the median forecast of 11 economists was for an 8.0 per cent rise in the wholesale price index in the 12 months to November 29.

New Delhi, Dec 11 : India’s inflation rate continued its southward movement and declined to eight per cent for the week ended on November 29 from 8.4 per cent in the previous week.

This was the slowest rise since mid-April when inflation was at 7.95 percent.

Inflation fell for the fifth consecutive week to a seven-and-a-half-month low of 8 per cent due to cheaper food items.

In fact, the rate of price rise in all certainty is expected to moderate substantially with cascading effect of fuel price cut and four per cent across the board excise duty reduction getting mirrored in the data in subsequent weeks.

The recently announced fiscal package by union government would have positive impact on Indian economy. Analysts feel that it would help to increase local demand and increase spending. The fiscal package and Reserve Bank of India's (RBI) interest rate cuts would mitigate the impact of global slowdown on Indian economy in a long run. Market would enjoy the relaxations in terms of duty cut and additional spending in infrastructure sector.
 

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.

In order to stimulate the economy, hit by the global financial crisis, the government has announced major tax cuts across the board to boost demand and allocated additional funds and incentives for exports, housing, textile and infrastructure. A four per cent cut in ad-valorem duty across the board to boost additional spending, enhanced credit for exporters, along with a Rs 10,000 crore mop up for India Infrastructure Finance Company has been announced by the RBI.  

New Delhi, Dec. 7 : To counter the effects of the global financial slowdown and its impact on various sectors of the Indian economy, the Central Government on Sunday announced an Rs. 20, 000 crore stimulus package that includes major across the board tax cuts to boost demand.

A total amount of Rs. 300, 000 crore is to be spent over the remaining four months on a host of areas and stake holders such as exporters, housing, infrastructure and textiles.

A four-percent cut in Value Added Tax has also been announced to help the corporate sector.