India to cut corporate tax, rise farming subsidies

Indian Finance Minister Arun Jaitley Saturday presented the first full-year budget of Prime Minister Narendra Modi's government, in which, the taxation for corporations will be dropped from 30 percent to 25 percent in four years.

He ruled out cutting subsidies for farmers as has been demanded by the U.S. at the WTO talks, vowing to reinforce support to the agriculture.

"When world is in crisis, India rises at the same time. World is predicting, it's our chance to rise," said Jaitley, adding that the country has registered a 7.5 percent growth in the passing fiscal year ending March 31, the highest in the world.

He said the latest inflation rate is 5.1 percent and the whole sale price inflation is negative, while the rupee has become stronger by 6.4 percent.

"I am presenting the union budget in an economic environment which is far more positive than in the recent past. While major economies of the world face difficulties, India is poised for higher growth trajectory," Jaitley said as he started his 2015- 2016 budget speech in the Lok Sabha.

"The real GDP growth is estimated at 7.5 percent for this fiscal, making India the fastest-growing large economy of the world," said Jaitley.

He said billions of U.S. dollars of subsidies will be provided to the country's farmers.

He also said allocations for a host of social sector projects were being enhanced substantially along with new social security schemes. He particularly said the allocation for the rural job guarantee scheme will be the highest ever. Endi