Fiscal deficit target kept at 4.1% of GDP

[NEW DELHI] Indian Prime Minister Narendra Modi's new government yesterday unveiled a first Budget that seeks to revive growth and curb borrowing, but left open questions on how it will reduce the fiscal deficit and restore investor confidence.

Expectations had been high that Mr Modi would utilise India's strongest election mandate in 30 years to take radical steps comparable to the 1991 market reforms that unleashed an era of high economic growth.

In a bid to halt a two- year spell of weak growth, the government announced steps to boost capital spending in Asia's third-largest economy and reassure foreign investors that they will get fair treatment.