For the Indian economy, this (FY12) was a year of recovery interrupted, Finance Minister Pranab Mukherjee said while announcing the Union Budget for 2012-13.
"When one year ago, I rose to present the Budget, the challenges were many, but there was a sense that the world economy was on the mend," Mukherjee said.
"The Budget (in 2011) was presented in the first glimmer of hope. But reality turned out to be different," he said.
The sovereign debt crisis in the Eurozone intensified, political turmoil in Middle East injected widespread uncertainty, crude oil prices rose, an earthquake struck Japan and the overall gloom refused to lift, Mukherjee said.
India is now at a juncture when it is necessary to take hard decisions, the FM said.
"We have to improve our macroeconomic environment and strengthen domestic growth drivers to sustain high growth in the medium term. We have to accelerate the pace of reforms and improve supply side management of the economy," he said.
The following are some of the key highlights of the Union Budget 2012-13.