Indian economy started responding to stimulus packages announced by the government, reported the Economic Times quoting top government officials.

According to a member who attended a meeting chaired by Cabinet Secretary K.M.Chandrashekhar, top officials from key economic ministries such as finance, commerce and micro, small and medium enterprises set their focus on the problems of implementing stimulus measures. The government came out with two stimulus packages one in December and another in January to boost economic growth. It included across-the-board cut in excise duty to the tune of 4%, higher infrastructure funding and tax refunds to exports.

The members evaluated the extent to which banks cut lending rates and its impact on the revival of the economy. They also took note of the impact of incentives extended to exporters. The Cabinet Secretary is meeting secretaries of key ministries again next week on how the service tax paid by exporters could be refunded soon. The first stimulus package promised service tax refund of foreign agent commissions and on output services while availing benefits under the duty drawback scheme.

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