India cut a range of taxes on popular consumer items on Thursday, as the ruling coalition backed early general elections to cash in on good economic times and peace with Pakistan.
The cuts of up to 50 percent announced by the finance ministry apply to popular consumer items such as household goods, medicines, computers, mobile phones and some business taxes.
Just after the announcement, the nearly 20-member ruling coalition, led by Prime Minister Atal Behari Vajpayee's Bharatiya Janata Party (BJP), said it backed plans to hold polls in April or May instead of going full term to October.
"There was no reservation on pre-polling (advancing) the poll," Defence Minister George Fernandes said after the meeting of the ruling coalition.
"The meeting authorised the prime minister to take whatever decision he deems fit in so far as the forthcoming general elections are concerned," he told reporters.
Analysts said the tax cuts were a sure sign of early polls.
"If there was any lingering doubt, it should now be discarded because they have gone too far now not to be committed," political analyst Inder Malhotra said.
"They are trying to introduce as many populist measures as they can," he added.
The powerful Deputy Prime Minster, Lal Krishna Advani, said last week the BJP favours early election and officials say the government is considering an economic statement rather than a full budget in February.
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