Watch India budget: Petrol, diesel prices go up; no new taxes

Indian Finance Minister Nirmala Sitharaman presented her first budget in parliament on Friday, July 5, 2019: the first budget of Modi 2.0.

The fiscal deficit goal for the year that began on April 1 was lowered to 3.3% of gross domestic product from 3.4% set in February's interim plan, Finance Minister Nirmala Sitharaman said in her maiden budget in Parliament in New Delhi on Friday. That plan will in part be funded by increasing taxes on the wealthy and selling stakes in state-run companies.

Highest income bracket

"Those in the highest income brackets need to contribute more to the nation's development," Sitharaman said. She aims to raise 1.05 trillion ($15 billion) rupees from asset sales, compared with 900 billion rupees targeted previously.

Sitharaman said the nation needs 20 trillion rupees annual investment on infrastructure, and the government will be tapping the overseas bond market for funds.

India's benchmark 10-year bonds dropped 12 bps to 6.63% while the rupee pared losses.

GDP growth is forecast to rebound to 7% in the current fiscal year from 6.8% last year, the Finance Ministry said in a report on Thursday, mirroring a projection from the Reserve Bank of India. The central bank has cut interest rates three times this year to spur growth.

Petrol, diesel prices to increase

Gold

For Non-Resident Indians (NRIs)

Taxation

Banking

India to become a $5 trillion economy

GDP borrowing

Nirmala Sitharaman, India's first full-time woman finance minister, began the big day by ditching the British-era briefcase for a red cloth folder enclosed with a string and emblazoned with the national emblem - which was described by officials as the "bahi khata".

Departure from tradition

Chief Economic Advisor K. Subramanian said that it was a departure from "slavery of western tradition". The red cloth symbolises the 'bahi khaata' traditionally used in every Indian business set up to maintain accounts.

Sitharaman was seen carrying the red cloth wrapped budget papers that was neatly bound with the auspicious yellow and red ribbon. The Lion Capital shone brightly on top of the bahi khaata, as the first-time Finance Minister walked out of the North Block.

Traditionally until now all former Finance Ministers have carried their Budget Document in a hardbound leather briefcase that takes after the parallel British custom - much like many of India's laws and Parliamentary practices.

Even Piyush Goyal, who presented the Interim Budget in February had carried a briefcase of colour and size of his choice and posed for the iconic photograph outside Finance Ministry and then Parliament building.