India plans to cut personal income tax rates to boost middle-class spending power, Finance Minister Nirmala Sitharaman said on Saturday, as she announced an annual budget that also sought to increase private investment to strengthen growth.

Indian Prime Minister Narendra Modi’s government presented an annual budget to Parliament on Saturday that focused on wooing the salaried middle class with tax cuts and spurring economic growth by boosting agriculture and manufacturing.

The Indian government has announced big tax breaks to boost spending of the country's middle class. In its annual budget presentation, the government also announced plans to bring in more private investment and measures to assist the poor and farmers.

Finance minister Nirmala Sitharaman will be hoping that the money she has put in the hands of the people will cause consumption to rise and accelerate economic growth.

The finance minister announced steps to tackle slowing growth, rising prices and low middle-class consumption.