Finance Minister Arun Jaitley's Budget 2016 reflected the government's emphasis on farmers and India's poorest.
An allocation of Rs. 87,765 crore has been announced for rural development, Mr Jaitley said.
"We need to think beyond food security to income security. We aim to double the income of farmers by 2022," said Mr Jaitley, announcing an allocation of Rs. 35,984 crore for farmers' welfare.
The government has been battling farm distress, with failed crops driving many to suicide in the parts of India worst hit by two years of drought.
"Farmers are our biggest focus," said Prime Minister Narendra Modi, who had yesterday compared the budget to an "exam".
In his Budget proposals, the Finance Minister listed agriculture and rural welfare among the "nine pillars of India", which will headline the government's agenda for "transformative measures" in the next year.
A dedicated irrigation fund worth Rs 20,000 crore will be set up under NABARD or National Bank for Agriculture and Rural Development.
Mr Jaitley also announced an aid of Rs 278,000 crore to Panchayats or village councils.
He said there had been a "quantum jump of 228%" in grants to gram panchayats and urban local bodies.
Rs 19,000 crore will be spent on a central scheme for rural roads. The government also aims at 100 per cent rural electrification in two years.
The government has also increased the allocation for the rural jobs guarantee scheme MNREGA, once described by Prime Minister Narendra Modi as "living proof of the Congress party's failure." The scheme has been allocated Rs 38, 500 crore.
The finance minister also announced a "massive mission" to provide cooking gas connection to the poorest homes in India. Rs 2,000 crore has been allocated for this.
Four in 10 Indians rely directly on farming for their livelihoods, the government estimates.
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