India to launch €3.1bn stimulus

India’s prime minister Manmohan Singh plans to spend an extra 200 billion rupees (€3.1bn) to support an economy buffeted by recession and a terrorist attack, following interest-rate cuts announced.

The government will spend a total of three trillion rupees, of which 7% is designated as new spending, in the remaining four months of the financial year, it said.

The Indian government plans to allocate the money by March.