The Finance Ministry announced reducing the customs and excise duty on non-subsidised domestic LPG cylinders to zero. TheFinance Minister, P Chidambaram on Friday said that more state governments should provide subsidy on LPG cylinders. 

After announcing a cap of 6 on subsidised LPG cylinders, the government had hiked the limit to 9 for Congress-ruled states, sttaing that the additional cost of the subsidy will be borne by the state governments. 

Since last week, the UPA government has allowed a slew of economic reforms aimed at boosting the economic growth. The reforms include allowing FDI in multi-brand retail, FDI in aviation by foreign carriers and a hike in diesel prices. 

In yet another reform, the government announced its intent to slash a tax on overseas borrowing by local companies to 5 per cent from 20 per cent. The reduced tax will apply to funds borrowed between July 2012 and June 2015, he said. 

The government on Thursday evening braved intense political opposition and a nationwide bandh to notify the rules for allowing foreign retailers such as Walmart and Carrefour to set up stores in India. 

The government also notified the relaxed conditions for single-brand retail as well as the norms for allowing 49% investment by foreign airlines in Indian carriers and permitting greater foreign investment in some sections of the broadcasting sector, sending out a clear message that it will not be cowed down by protests and effectively severing its relations with Trinamool Congress. (Economic Times)