Finance Minister Arun Jaitley has unveiled a budget aimed at boosting farm growth and appealing to the rural poor.
Having overtaken China as the world’s fastest-growing economy, India is seen as a bright spot in the global economy.
But it has been hit by slowing global demand and severe droughts affecting rural areas. Analysts say Mr. Jaitley has announced increased spending on rural economy, health and social sectors with an eye on boosting his party’s prospects in the coming state elections.
They include a pledge to set up 89 projects for irrigation, doubling investments in rural roads to help farmers get produce to market, getting cooking gas to millions of poor households and funds for women entrepreneurs from underprivileged families.
The government would raise spending on a massive rural employment scheme, a crop insurance programme and increasing rural access to the Internet.
It would also work to ensure all the country’s villages had electricity within two years.
He said the government would achieve its goal of cutting the fiscal deficit to 3.5% of gross domestic product (GDP) for 2016-17 from 3.9% the year before.
Since coming to power in 2014, Mr Modi has promised to improve business and investor climate in the country with tax reforms and major infrastructure projects.
Union Budget 2016-17
