MUMBAI, India (AP) — India’s new government introduced a reform-minded budget Thursday, telegraphing a contentious overhaul of populist subsidies and vowing to lift economic growth to rates of 7-8 percent by spending billions of dollars on infrastructure.

The budget for the fiscal year ending March 2015 was closely watched as an indicator of whether Prime Minister Narendra Modi’s government will act quickly to will deliver on promises to revive stalled economic growth. The government also announced plans to ease limits on foreign investment in defense and insurance businesses.