India has pledged to invest billions of dollars to improve the lives of farmers and boost the rural economy, boost consumer demand and stimulate growth.

Finance Minister Arun Jaitely proposed spending nearly $13 billion on rural development, promising higher incomes for farmers who form the majority of India's 1.2 billion people.

Jaitely presented Monday an annual budget for 2016-17 meant to help energize Asia's third-biggest economy.

He outlined what he called the government's "nine pillars" of a "transformative agenda" for the economy.

They include a slew of measures to boost education, increase infrastructure investment, intensify oversight of government spending and reform India's complicated tax regime.