The Government of India has announced a Rs 20,000 crore fiscal  stimulus package.

In a release on the Press Information Bureau website, it stated, “[The] Government has been concerned about the impact of the global financial crisis on the Indian economy and a number of steps have been taken to deal with this problem.”

Yesterday, the Reserve Bank of India had announced a 100-basis points cut in the repo and reverse repo rate. (Also read: RBI cuts repo, reverse repo rate by 100 bps)

"In order to provide a contra-cyclical stimulus via plan expenditure, the Government has decided to seek authorisation for additional plan expenditure of upto Rs 20,000 crore in the current year. In addition, steps are being taken to ensure full utilisation of funds already provided, so that the pace of expenditure is maintained," the government's release stated. "The economy will continue to need stimulus in 2009-2010 also and this can be achieved by ensuring a substantial increase in plan expenditure as part of the budget for next year."

source: moneycontrol