Centre planning about $20 bn of new stimulus

India is planning to announce a fresh round of stimulus worth about $20 billion (around Rs 1.5 trillion) this week to pull the economy out of its worst contraction, government officials said.

Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman and other top officials will finalise the plan on Thursday, said the sources, who asked not to be named.

The cabinet approved a proposal on Wednesday to provide production-linked incentives of about $27 billion over five years to manufacturers in 10 sectors.