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EXCLUSIVE - Austerity in India: Defence and welfare spending to be slashed

A truck carrying construction material drives at a road construction site on the outskirts of Jammu January 30, 2013. REUTERS/Mukesh Gupta

A truck carrying construction material drives at a road construction site on the outskirts of Jammu January 30, 2013. REUTERS/Mukesh Gupta

A truck carrying construction material drives at a road construction site on the outskirts of Jammu January 30, 2013. REUTERS/Mukesh Gupta
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Village woman Kiran Mallick, 53, who works at a road construction site under National Rural Employment Guarantee Act (NREGA), an anti-poverty plan that provides 100 days of employment every year to tens of millions of rural poor, poses as she takes a break in Paschim Medhinapur district of West Bengal January 21, 2013. REUTERS/Rupak De Chowdhuri

Village woman Kiran Mallick, 53, who works at a road construction site under National Rural Employment Guarantee Act (NREGA), an anti-poverty plan that provides 100 days of employment every year to tens of millions of rural poor, poses as she takes a...more

Village woman Kiran Mallick, 53, who works at a road construction site under National Rural Employment Guarantee Act (NREGA), an anti-poverty plan that provides 100 days of employment every year to tens of millions of rural poor, poses as she takes a break in Paschim Medhinapur district of West Bengal January 21, 2013. REUTERS/Rupak De Chowdhuri
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A labourer removes dust from a newly constructed road in Ahmedabad January 29, 2013. REUTERS/Amit Dave

A labourer removes dust from a newly constructed road in Ahmedabad January 29, 2013. REUTERS/Amit Dave

A labourer removes dust from a newly constructed road in Ahmedabad January 29, 2013. REUTERS/Amit Dave
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G24 Chair and India's Finance Minister Palaniappan Chidambaram reads a documents prior to the International Monetary and Financial Committee at the annual meetings of the IMF and the World Bank Group in Tokyo October 13, 2012. REUTERS/Kim Kyung-Hoon/Files

G24 Chair and India's Finance Minister Palaniappan Chidambaram reads a documents prior to the International Monetary and Financial Committee at the annual meetings of the IMF and the World Bank Group in Tokyo October 13, 2012. REUTERS/Kim...more

G24 Chair and India's Finance Minister Palaniappan Chidambaram reads a documents prior to the International Monetary and Financial Committee at the annual meetings of the IMF and the World Bank Group in Tokyo October 13, 2012. REUTERS/Kim Kyung-Hoon/Files
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