NEW DELHI, Feb 1: India will spend a record $133 billion on infrastructure, the finance minister unveiled on Sunday in her national budget speech, with plans for new high-speed train links and tech investments.
The figure is an almost nine percent jump from last year's budget.
Data centres, artificial intelligence, and the mining and processing of rare earths will also receive government support, Finance Minister Nirmala Sitharaman told parliament.
She said public expenditure had increased significantly from around $21 billion (2 trillion rupees) in 2014-15 and that it was now at an "all-time high".
The world's most populous country sees massive infrastructure spending as key to sustaining its high growth rate by boosting domestic manufacturing and creating millions of new jobs.
"India is not content with simply being the fastest-growing economy," Prime Minister Narendra Modi said after the budget.
"India wants to become the world's third-largest economy. This year's budget presents an ambitious roadmap to give new momentum to" domestic manufacturing and self-reliance.
Sectors including textiles, pharmaceuticals, electronics and chemicals are primary targets to boost exports, Sitharaman said.
She promised the development of three chemical business parks, as well as mega textile hubs.
Around $5 billion will also be allocated to boost domestic electronics manufacturing, she said.
It is the first budget since US President Donald Trump imposed 50 percent tariffs on most Indian imports in August.
New Delhi and Washington are in the process of negotiating a long-delayed trade agreement.
But relations have soured over India's purchases of Russian oil, which Washington says is helping bankroll Moscow's war in Ukraine.
New Delhi signed a major trade deal with the European Union last month, with many crediting Trump's tariffs for helping finalise the deal.
"Today, we face an external environment in which trade and multilateralism are imperilled, and access to resources and supply chains are disrupted," Sitharaman said in parliament.
"India will continue to take confident steps towards 'Vikasit Bharat' (developed India) by balancing ambition with inclusion".
The budget touted plans for seven high-speed rail corridors between some of India's most important cities, including Mumbai, Bengaluru, Hyderabad, Pune, and Chennai.
It also puts forward a scheme to build "dedicated rare earth corridors" in four mineral-rich states in southern and eastern India.
Z News adds, Union Finance Minister Nirmala Sitharaman presented the Union Budget for the record ninth time on Sunday. Meanwhile, Prime Minister Narendra Modi stated that it gives an ambitious push to the 'Make in India' and Atmanirbhar Bharat missions.
The Prime Minister hailed the budget as historic and said that it showed India's commitment to women's empowerment.
"Today's budget is historic, as it highlights India's commitment to nari shakti, women's empowerment. As a woman Finance Minister, Nirmala ji has set a new record by presenting the Union Budget for the ninth consecutive time," PM Modi said. "AFP, Z NEWS
