India on Friday hiked the defence budget for 2012-13 to Rs.1,93,007 crore (42 billion/Rs.1.93 trillion dollar) to fuel rapid modernisation of its army, navy and air force.

In an effort to adequately handle the challenges like slow economic growth rate, volatility in rupee, poor state of government’s treasury and pending economic reforms, the Finance Minister may table a growth-oriented budget on Friday. In the economic survey released on Thursday, the Finance Minster has already highlighted these problems. Challenges posed in economic survey are giving indication of an aggressive budget on Friday.

Injecting a note of levity in his somber budget presentation, a smiling Finance Minister Pranab Mukherjee told the Lok Sabha on Friday that he had no problem in a "rollback of the speech".

Indian equities markets rose as Finance Minister Pranab Mukherjee on Friday started reading out his budget speech with promises of cutting subsidies and improving the investment environment.

Indian Finance Minister Pranab Mukherjee was set to present the federal budget to parliament on Friday morning, under pressure to trim the country's fiscal deficit amid cooling economic growth and a crisis of stability for the coalition government.   

Finance Minister Pranab Mukherjee started presenting what was his seventh federal budget in the Lok Sabha on Friday, with a reference to the state of the global economy and its impact on India.

Shares of public sector banks rallied sharply on the bourses, as Finance Minister Pranab Mukherjee announced capital infusion for them in the Union Budget for 2012-13.

Finance Minister Pranab Mukherjee on Friday said the growth of the Indian economy estimated at 6.9 percent during this fiscal year was "disappointing" as he started presenting what was his seventh federal budget in the Lok Sabha.

The best thing Indian Prime Minister Manmohan Singh's government has going for it ahead of Friday's federal budget unveiling is low expectations.   

The government will present its 81st budget proposals in the history of independent India, when Finance Minister Pranab Mukherjee on Friday reads out his taxation and other economic policies before the Parliament.