India's govt. reduces tax, pledges to boost rural economy

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  • A Security man stands guard as a worker unloads sacks containing federal budget documents for the year 2017-18, that will be distributed to lawmakers at the parliament house in New Delhi, India Wednesday, Feb. 1, 2017. The budget is being keenly watched as it comes months after Prime Minister Narendra Modi announced a massive demonetization exercise that impacted all sections of India's economy. (AP Photo/Manish Swarup)

    A Security man stands guard as a worker unloads sacks containing federal budget documents for the year 2017-18, that will be distributed to lawmakers at the parliament house in New Delhi, India Wednesday, Feb. 1, 2017. The budget is being keenly ... watched as it comes months after Prime Minister Narendra Modi announced a massive demonetization exercise that impacted all sections of India's economy. (AP Photo/Manish Swarup) (The Associated Press)

  • FILE- In this Jan. 26, 2017 file photo, Indian Army soldiers march during a Republic Day parade in New Delhi, India. Indian Finance Minister Arun Jaitely, in presenting the budget for the fiscal year starting April 1 in Parliament on Wednesday, said the Indian economy was doing well despite slowing growth in other emerging economies. (AP Photo/Manish Swarup, File)

    FILE- In this Jan. 26, 2017 file photo, Indian Army soldiers march during a Republic Day parade in New Delhi, India. Indian Finance Minister Arun Jaitely, in presenting the budget for the fiscal year starting April 1 in Parliament on Wednesday, said ... the Indian economy was doing well despite slowing growth in other emerging economies. (AP Photo/Manish Swarup, File) (The Associated Press)

  • Indian laborers work at a flyover construction site in Jammu, India, Wednesday, Feb.1, 2017. India's finance minister Wednesday pledged relief for middle class taxpayers and small and medium-sized companies while planning billions of dollars in spending to double farmers' incomes over the next five years and improve the country's ramshackle infrastructure and provide cheap homes to people. (AP Photo/Channi Anand)

    Indian laborers work at a flyover construction site in Jammu, India, Wednesday, Feb.1, 2017. India's finance minister Wednesday pledged relief for middle class taxpayers and small and medium-sized companies while planning billions of dollars in ... spending to double farmers' incomes over the next five years and improve the country's ramshackle infrastructure and provide cheap homes to people. (AP Photo/Channi Anand) (The Associated Press)

India's finance minister has pledged relief for middle class taxpayers and small and medium-sized companies while planning billions of dollars in spending to double farmers' incomes over the next five years and improve the country's ramshackle infrastructure and provide cheap homes to people.

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Finance Minister Arun Jaitely, in presenting the budget for the fiscal year starting April 1 in Parliament on Wednesday, said the Indian economy was doing well despite slowing growth in other emerging economies. He projected economic growth of between 6.75 and 7.5 percent in 2017-18.

Since coming to power in May 2014, Prime Minister Narendra Modi's Hindu nationalist government has been pumping funds into boosting education, while increasing spending on roads, irrigation and other infrastructure. It has also been reforming India's complicated tax regime.