The government of India has now been forced to give a stimulus plan, worth around 20 billion dollars, to save its ailing housing / exports and infrastructure industries. The package consists of excise duty reduction across the board which will benefit all basic industries, and export incentives to enable the ailing export sector to remain competitive. With major stimulus given by the Chinese and Japanese governments, it is imperative on the part of the Indian government to support it’s industries with adequate stimulus plan. Whether India is financially capable of supporting any further stimulus plan in future is a billion dollar question.