The finance minister chided the central bank on Tuesday over its focus on fighting inflation, saying the Reserve Bank of India (RBI) also needed to abide by the government policy to promote economic growth.
Rajan said investments should return after initial investor worries over Brexit.
The world, he said, needs to move towards a transparent and flexible market for both oil and gas.
Chinese Premier Premier Li Keqiang said world economic recovery should not be driven by mainly China, but in concert with many countries.
The watershed 2014 Indian election has thrown a decisive mandate after 30 years of coalition-based governments.
The S&P BSE Sensex ended 80 points up at 23,789 while the Nifty50 closed at 7,235, up 24 points.
Finance minister attempts a clean-up job, keeps projected expenditure growth low.
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It also painted a grim possibility of any major gains in the rupee during the current fiscal saying that the continuing global volatility, and domestic political uncertainty ahead of the 2014 hustings will limit chances of any significant appreciation apart from further impact growth.
'Obviously, there is always an argument that a weaker rupee could push up, to some, extent exports.' 'The fact that the rupee has appreciated against the Chinese currency is pushing a lot of Chinese imports into the Indian market.'
He said countries should work for promoting open and inclusive cooperation for win-win outcomes.
'Retail investors have been selling since the Budget and Foreign Portfolio Investors started selling.' 'Thus far, domestic institutions have picked up the slack, buying enough to keep the major indices from falling off a cliff.' 'However, there has been carnage in smaller stocks and the financial sector has been hit much harder than the major market indices,' points out Devangshu Datta.
India will also play an increasingly important role as one of the Asia-Pacific region's major economic growth engines, helping to drive Asian regional trade and investment flows.
The captains of Indian industry described Narendra Modi government's maiden budget as one with "the right intent and in the right direction".
'We all wanted a strong Centre with a decisive mandate from the people, to allow them to take bold decisions.'
Fall of rupee is not necessarily a bad thing as it will support exports which will help bridge the gap in current account deficit, Chief Executive Officer of Nordea Asset Management Company Allan Polack said.
RBI is expected to discuss about the impact of GST in its monetary policy.
RBI aiming to bring down headline number to 8% by end of this year and to 6% by the end of next year.
With a rise of around 30 per cent in the benchmark index S&P BSE Sensex, 2014 has been the best year for Indian equity markets since 2009, when the benchmark index surged 81 per cent.
'The variables to watch include the monsoon, resolution of NBFC liquidity issues, GST collections, and NPA resolution.'
Profits grow, but not because of recovering demand.
Going by the number of changes Mr Jaitley's next Budget is likely to see, he will go down in the history of Budget-making as the finance minister who ushered in the largest number of changes in a single Budget, says A K Bhattacharya.
RBI Governor Raghuram Rajan is regarded as credible by global financiers.
The Budget has unveiled measures that should now pave the way for India to progress from Make in India to 'Innovate in India'.
Between now and the general elections (likely in May 2019) there are 12 assembly polls, which analysts say, in a way will also be interpreted as a referendum on the Modi-led government's key reforms
The flawed response to the crisis has fed a us-vs-them mentality in which the banker, the expert, the coastal entrepreneur, the immigrant, the foreigner are all villains. The crisis was not that much of a problem; the response -- the over-reaction, the sovereign debt build-up and the lasting anger -- is the problem, says Mihir S Sharma.
'At 1.58% of GDP, the defence budget is one of the lowest since the Chinese aggression of 1962.' 'The government of the day has lost sight of the fact that defence of the country is as important as its growth,' says Brigadier S K Chatterji (retd).
The brokerage said it has high hopes for recovery and reforms following the general elections.
The Reserve Bank of India (RBI) kept its key policy repo rate unchanged at 8.0 percent on Tuesday, as widely expected, while expressing concerns about risks to its target to bring consumer inflation down to 6 percent by January 2016.
His finest years came when he served as deputy governor under C Rangarajan.
Overhauling India's bloated and often sluggish state banks is critical for the government
Assessing the shape of the Indian economy just a couple of days ahead of the Union Budget for 2016-17, Saugata Bhatacharya, senior vice president and chief economist, Axis Bank, speaks about his budget wishlist and suggests measures that can help finance minister Arun Jaitley achieve the targeted fiscal deficit of 3.5 per cent of India's gross domestic product.
Stability in currency markets was only restored from September.
'The estimates of tax forgone on this item run into hundreds of billions.' 'And there is neither fairness nor rationality to support continuing with this tax holiday for just one class of investors, those who put their money in shares,' says T N Ninan.
'Chinese pressure on Taiwan is unlikely to ease till Beijing feels that stability is being restored in the Sino-US relationship,' says former RAW officer Jayadeva Ranade.
Shaktikanta Das said in Washington, DC, that there was nothing sacrosanct about the 25 bps rate cut and that monetary policy could be well served by calibrating the size of the policy rate to the dynamics of the situation, and the size of the change itself could convey the stance of policy.
The government has changed arbitration laws, amended some 'provisions' of the Companies Act.
In prior elections, not only have opinion poll forecasts been very different from the results, the error margin has increased over time. One need only look at the charts that show the Sensex half a year before and after the results day for the last six elections. The markets did not change direction in any, says Neelkanth Mishra.
India will catch up with China's growth at 7 per cent during 2016-17, the World Bank has forecast, saying India's economy has recovered in the wake of the economic reform measures taken by the new Indian government, falling oil prices and lower interest rates.
A few companies continue to pay taxes at 15-20%.
Barry Eichengreen, professor of economics and political science, University of California, Berkeley, analyzes the transparency of the Reserve Bank of India, the growth rate of the Indian economy and why he feels globalisation can never be rolled back.
