India budget Wednesday

The Indian government is to introduce its budget for the next fiscal year in parliament tomorrow Wednesday.

The budget comes at a time of slowing economic growth in India and with elections due in five states later this year.

A recent government economic survey recorded a sharp fall in overall economic growth, with agriculture, manufacturing and service industries all faring badly.

The survey called for a number of tough measures to boost the economy, including an immediate cut in subsidies, but a BBC correspondent in Delhi says the options open to the finance minister Yaswant Sinha in the budget will be limited because of the difficult economic climate. Officials say defence spending is likely to be increased in the budget, to enable India to replace obsolete weapon systems and to develop its nuclear capability.

From the newsroom of the BBC World Service