New Delhi/ Mumbai: The new-found zeal on the Congress-led United Progressive Alliance Government to undertake bold economic reforms continues with Finance Minister P Chidambaram announcing that there will zero customs duty and VAT on non-subsidised LPG cylinders.

Chidambaram also lowered tax on external commercial borrowings (ECB) by Indian companies to five per cent from 20 per cent and also approved the Rajiv Gandhi Equity Schemes, tailor-made to encourage first time investors enter the equity markets.

The share markets gave a resounding thumbs up to the reforms with the BSE Sensex zooming more than 450 points, the biggest single-day gain this year. The markets sentiments also got a boost from Samajwadi Party chief Mulayam Singh Yadav announcing that he would continue to support the UPA Government, which has been reduced to a minority after the Trinamool Congress decided to withdraw support.

After Mulayam’s statement the number games in Lok Sabha indicate that the UPA Government is not going to fall easily. The Congress strategy is at getting all its allies to stand strongly with the government on its reforms measures which will also reassure the markets.

The government had notified its decision to allow foreign direct investment in multi-brand retail, aviation and broadcasting sectors on Thursday even as the Opposition as well as some Congress allies were busy enforcing Bharat bandh against the decisions. (IBN)