India's annual budget announcement was a bigger deal than usual this year: As the first full budget of Prime Minister Narendra Modi's third term, it will set the tone for how the world's fifth-largest economy confronts slowing growth and sagging markets.

But the year's top economic policy event opted mainly for short-term economic relief through middle-class tax cuts, while passing up a chance to go big on reforms needed to reignite rapid growth — once the envy of the world at more than 8%.

The budget also scaled back the government's emphasis on capital spending and infrastructure, another key driver for India's growth ambitions since the pandemic.