The BBC Economics Correspondent says the Indian budget has been given a lukewarm reception by the financial community both at home and abroad.

He said the general view was that it was protectionist, with few indications how inflows of foreign investment were going to be increased.

The Bombay stock exchange fell after Mr Sinha's speech, more than wiping out sharp gains earlier in the day.

One opposition leader, Sharad Pawar of Congress, said the budget did not take account of the effects of eocnomic sanctions.

Mr Sinha said their impact was being overestimated, but he would take further measures as necessary.