India uses budget speech to sound upbeat economic note

India's Finance Minister Pranab Mukherjee has unveiled the country's annual budget, saying that the economy is turning around.

He added that India would look to reduce subsidies, accelerate reforms and state asset sales and boost infrastructure spending. The budget comes as the government's popularity has slumped due to a number of scandals and policy failures.

There were concerns it may sacrifice fiscal prudence in order to win votes. "I don't see any populist schemes, but this not a reformist budget either," said A Prasanna of ICICI Securities in Mumbai.

"It is a status quo budget. I think the political compulsions made them decide that the best way is to play it safe," Reuters news agency quoted him as saying.

The government's plans for development have been hampered by a slowdown in the economy.

" It is heartening to see that the government has recognised the importance of infrastructure for future growth"

During the last three months of 2011, India's economy grew at its slowest pace in three years.

Growth was 6.1% in the fiscal third quarter, though on Friday Mukherjee explained that it was only a temporary slowdown.

He forecast that the economy would expand by 6.9% in the current fiscal year ending in March, with growth accelerating to 7.6% in the financial year running from 2012 to 2013. "Though we have been able to limit the adverse impact of the slowdown in our economy, this year's performance has been disappointing," Mukherjee said.

However, he explained that when compared to other nations "India still remains among the front-runners in economic growth".

He added that "there are signs of recovery in the coal, fertiliser, cement and electricity sectors".

While this is good news for many investors, it was Mukherjee's attempt to tackle subsidy spending that is likely to gain the most attention, not least because government plans to raise rail fares announced on Wednesday provoked a political storm.

Currently, India spends almost 2.5% of its gross domestic product (GDP) on subsidies of goods such as fuel, food and fertilizer. This has mainly been driven by an increase in crude oil costs amid problems in the Middle East and North Africa. Mr Mukherjee said India would now look to cut subsidy spending to 1.7% of GDP from 2013. The impact of the higher subsidy costs can be seen on the state of the government's finances.The finance minister said that the budget deficit for the current year was expected to be 5.9%, much higher than the government's target of 4.6%.

Sachin Tendulkar scores his 100th international century for India

India's Sachin Tendulkar has become the first player to score 100 international centuries by compiling a ton in a one-day defeat against Bangladesh in Dhaka. The 38 year old completed his landmark century, his 49th in one-day cricket, with a single clipped to square leg.

After being dismissed for 114, he said: "I was not thinking about the milestone. It hasn't sunk in." Tendulkar had twice been out in the 90s after scoring his 99th century against South Africa in March 2011.

Afghanistan massacre suspect named as Sgt Robert Bales

The US soldier accused of killing 16 Afghan civilians in a massacre that has undermined relations with Kabul has been named as Staff Sgt Robert Bales.

Senior US officials told the BBC the name of the suspect as he was heading back to the US to face charges.

He is expected to land soon at Fort Leavenworth, in Kansas, from Kuwait. His lawyer, John Henry Browne, said on Thursday that the suspect was a 38 year old man who had been injured twice while serving in Iraq.

He also said the accused had witnessed his friend's leg blown off the day before the killings. That incident has not been confirmed by the US Army. The Taliban called off peace talks in the wake of Sunday's deadly rampage in which men, women and children were shot and killed at close range. Afghan President Hamid Karzai has also reacted angrily to the killings. He told the US it must pull back its troops from village areas and allow Afghan security forces to take the lead in an effort to reduce civilian deaths.

On Friday he said the US was not fully co-operating with a probe into the killings. He also said the problem of civilian casualties at the hands of Nato forces had "gone on for too long". "This form of activity, this behaviour cannot be tolerated. It's past, past, past the time," Karzai told the BBC's Lyse Doucet at the presidential palace in Kabul.

Sgt Bales has not yet been charged, but is the only known suspect in the killings despite repeated Afghan assertions that more than one American was involved.