Prime Minister Narendra Modi Saturday warned of "tough decisions" over the next couple of years to nurse India's ailing economy back to good health, lamenting the precarious conditions the BJP-led government has inherited from the UPA regime.

"Taking tough decisions and strong measures in the coming one or two years are needed to bring financial discipline, which will restore and boost the country's self-confidence," Modi said addressing BJP workers here.

Modi's remarks come barely four weeks before finance minister Arun Jaitley presents the new government's first budget for 2014-15 in the second week of July.

The budget will hold out cues on how the government plans to deliver on some of its poll promises — including jobs, price control and speedier implementation of projects — to revive the economy from its current quarter-century slump and breathe life into the waning industrial sector.

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