New Delhi plans $4b in extra spending

The Indian government plans to spend an additional $4 billion to boost the nation's slowing economy, the Prime Minister's Office said yesterday.

The government also announced measures to help exporters, small businesses and textile manufacturers, a plan to expand mortgage lending and a cut in valued-added tax.

It also said a state-run financing firm will be allowed to issue $2 billion worth of tax-free bonds to finance infrastructure projects.