India's newly appointed finance minister, Nirmala Sitharaman, presented the country's full-year budget Friday.
It comes on the heels of the country's recent parliamentary elections which saw Prime Minister Narendra Modi win a decisive victory.
The budget will cover the remainder of the fiscal year that started April 1, 2019 and will run until March 31, 2020.
"We need to invest heavily in infrastructure, in digital economy and on job creation in small and medium firms," Sitharaman told the Parliament during her budget speech. She said India is set to become a $3 trillion economy in the current financial year and it will be "well within our capacity to reach $5 trillion in the next few years."
Friday's budget focused on increased infrastructure spending, easing rules around foreign direct investment, improving livability in rural India, and providing financial support to the banking and financial sector, among other measures.
The measures are aimed to counter the recent slowdown in the Indian economy. Between January and March, annual growth declined to 5.8% — the slowest pace in 20 quarters. For the fiscal year that ended in March, the economy expanded at a five-year-low of 6.8%.
Several high frequency indicators — such as industrial output data and auto sales numbers — have suggested the slowdown could be more severe than previously predicted. Making matters worse, unemployment is at a 45-year high.
Sitharaman also said the government will reduce its fiscal deficit target for the current financial year from 3.4% to 3.3%.
Some of the measures announced Friday include:
— Reuters contributed to this report.