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| India unveils reform federal budget | |
| (about 2 hours later) | |
| India's new government is lifting some caps on foreign investment, tightening borrowing limits and plans to introduce a goods and sales tax as part of what it is calling a "budget for growth". | |
| Finance Minister Arun Jaitley said India's people were "exasperated" after two years of economic slowdown. | |
| India's economy has slowed markedly in recent years, growing by 4.7% in 2013-14. In 2010-11, growth was 8.4%. | |
| Mr Modi's government has promised reforms aimed at creating jobs. | Mr Modi's government has promised reforms aimed at creating jobs. |
| The budget is also expected to contain measures designed to slow inflation. | The budget is also expected to contain measures designed to slow inflation. |
| "We shall leave no stone unturned in creating a vibrant and strong India," Mr Jaitley told reporters ahead of presenting the budget. | |
| Later, Mr Jaitley told the parliament that Asia's third largest economy would grow at rate of 7-8% within three to four years, and announced that his government would increase caps on foreign investment in defence and insurance sectors to 49% from 26%. | |
| He also set a fiscal deficit target of 4.1% of gross domestic product (GDP) for this year with further cuts in coming years - 3.6% in 2015-16 and 3% in 2016-17. | |
| "We cannot leave behind a legacy of debt for future generations," he said. | |
| Mr Jaitley also spoke about plans to introduce a goods and sales tax (GST) this year. | |
| Deficit target | Deficit target |
| A government survey, published on Wednesday, said the country's fiscal situation was worse than it appeared. | A government survey, published on Wednesday, said the country's fiscal situation was worse than it appeared. |
| "Inflation needs to be moderated further. The fiscal deficit needs downward correction over the next two years," said Finance Minister Arun Jaitley, who will present Thursday's budget. | "Inflation needs to be moderated further. The fiscal deficit needs downward correction over the next two years," said Finance Minister Arun Jaitley, who will present Thursday's budget. |
| The report forecast GDP growth of between 5.4% and 5.9% in 2014-15, but warned that weak monsoon rains, which are essential for farming, could keep growth closer to 5.4%. | The report forecast GDP growth of between 5.4% and 5.9% in 2014-15, but warned that weak monsoon rains, which are essential for farming, could keep growth closer to 5.4%. |
| Last year, credit ratings agency S&P warned there was a one-third chance of a downgrade of India's credit rating to "junk" without a big improvement in the fiscal deficit and in implementing reforms. | Last year, credit ratings agency S&P warned there was a one-third chance of a downgrade of India's credit rating to "junk" without a big improvement in the fiscal deficit and in implementing reforms. |
| Mr Modi won a landslide general election victory in May with a pledge to boost growth and create jobs for the one million people who enter India's workforce every month. | Mr Modi won a landslide general election victory in May with a pledge to boost growth and create jobs for the one million people who enter India's workforce every month. |
| Are you in India? What are your hopes for the federal budget? You can email your experiences to haveyoursay@bbc.co.uk, using the subject line 'India budget'. | Are you in India? What are your hopes for the federal budget? You can email your experiences to haveyoursay@bbc.co.uk, using the subject line 'India budget'. |