India’s New Budget for the Coming Year

Indian Prime Minister Narendra Modi and his government unveiled their first full-year budget this week. They have planned a major increase in public spending on infrastructure and a lower corporate tax rate. There will also be a new welfare program for the poor and more relaxed plans for fixing the fiscal deficit.

The government is predicting a growth rate of 7.4% in this fiscal year.

Mr. Jaitley started out his speech saying, “The credibility of the Indian economy has been re-established. The world is predicting that it is India’s chance to fly.” He continued by saying “We have to think in terms of a quantum jump.”

Some found the budget’s focus on welfare to be a surprise. As Jayshree Sengupta, a senior fellow at the Observer Research Foundation, said “You know, I had expected it to be a very pro-business, pro-rich budget, and I was really surprised by how much he has given to the rural employment scheme.”

Read more details about the budget and the reaction from many.