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Modi government’s planned booster dose for economy puts policymakers in two minds

India is considering a package of stimulus measures to boost exports, encourage domestic investment, support small and medium enterprises and provide more money for rural infrastructure and affordable housing but policymakers are not keen on relaxing fiscal deficit targets to accommodate this extra spending. Concessional credit to small and medium enterprises, incentives for exports that have grown moderately even as global export growth has picked up and more funds for railways are some of the measures on the cards.

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