UPDATE 1-India budget will focus on accelerating, sustaining strong economic growth, finance minister say

The budget for the next ⁠fiscal year will focus on structural reforms, building a robust financial sector and stepping up investments in cutting edge technologies, including artificial intelligence, she said. The Indian economy is seen growing at 7.4% in the current financial year, ​with inflation expected at near 2%.

(Updates to reflect beginning of budget speech) NEW DELHI, Feb 1 (Reuters) -

India's annual budget will look to accelerate and sustain strong economic growth while improving ‌business competitiveness, amid a volatile global environment, Finance Minister Nirmala Sitharaman said as she laid out priorities for the economy. The budget for the next ⁠fiscal year will focus on structural reforms, building a robust financial sector and stepping up investments in cutting edge technologies, including artificial intelligence, she said.

The Indian economy is seen growing at 7.4% in the current financial year, ​with inflation expected at near 2%. The government's fiscal deficit for the year is expected ‍at 4.4% of GDP. To spur private investment and demand, New Delhi has rolled out a series of reforms in recent months, including consumption and income tax cuts, overhaul of labour laws and steps to open up the tightly controlled nuclear-power sector. ⁠More ‌policy changes are expected in ⁠the budget.

"The nation is moving away from long-term problems to tread the path of long-term solutions. Long term solutions provide predictability ‍that fosters trust in the world," Modi said on Thursday before the government's economic survey forecast growth of between ​6.8% and 7.2% for the fiscal year starting in April. India will continue with "next-generation reforms", ⁠as the next 25 years will be key to meeting the goal of making the South Asian nation a developed economy, he ⁠said.

Modi's government also plans a third major push to boost manufacturing as a share of the economy, after two failed attempts. It is also expected to ease rules for investments in defence ⁠manufacturing. India is also striking deals such as a landmark trade agreement with the European Union to offset ⁠the hit from ‌the 50% tariffs President Donald Trump has imposed on some Indian goods shipped to the U.S.

($1 = 91.6710 Indian rupees)

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