New Delhi: The excise duty cuts announced by the government last week will help lower retail prices for a variety of products such as cement, steel and heavy vehicles, and boost their demand, according to a survey by an industry group.

Retail prices of bulk cement can drop by about Rs3 per bag, while steel prices are expected to come down by Rs500-750 a tonne, the survey by Federation of Indian Chambers of Commerce & Industry (Ficci) showed.

The tax cuts will help commercial vehicles and cargo goods carriers, whose prices are expected to fall by Rs2000-30,000 in different categories of vehicles, although two-wheeler manufacturers will not benefit much, Ficci said.

Textiles, which has been hit by global economic downturn, is also unlikely to see any drop in prices as it doesn’t benefit from the measures unveiled, the survey said.

Since December, India has cut excise duties and service tax rates, apart from easing monetary policy stance to lift demand in a slowing economy.

The economy grew 5.3% in the December quarter, its slowest annual pace in almost six years, a far cry from annual growth of 9%-plus recorded in the last three years.

The government has said it expects the economy to end the current fiscal with a growth of 7.1%, but many economists consider it to be too optimistic.