Indian President Patil unveils new government agenda

New Delhi - Indian President Pratibha Patil Thursday unveiled the agenda for the new government, saying economic growth, financial reforms, strengthening internal security and pro-poor policies will be priority areas over the next five years. Patil's address to a joint session of Parliament reviewed the achievements of Manmohan Singh's government in the last term and laid out the roadmap for his administration's second term. The parliament's Lok Sabha or House of the People began its first session Monday after the Indian National Congress party returned to power following a resounding win in the April-May national elections. The presidential address, which identifies focus areas for the five-year term of the government, is prepared by the prime minister and his council of ministers. In plans for economic recovery, a key point was the government's proposed move for divestment in state-run enterprises while retaining an equity of 51 per cent. The government is to focus on adversely affected sectors such as infrastructure, exports, textiles and housing in order to restore India's growth momentum, Patil said. 'The current financial year is expected to see a slowing down of growth on account of the global recession,' she said. 'Our immediate priority must be to focus on management of the economy that will counter the effect of the global slowdown by a combination of sectoral and macro-level policies.' She said the government would take steps to encourage foreign investment, put more capital in public sector banks to strengthen their financial position and introduce pension reform bills. Analysts said Singh is expected to have a free hand in pushing ahead with policies and reforms without much pressure from political allies after his party notched up its best performance in almost two decades. Immediate challenges before Singh are to boost the economy as the country's annual growth has fallen to 6.7 per cent, the slowest pace in six years. The government also announced the continuation of several of its pro-poor and welfare policies. Major welfare schemes for farmers, better health facilities for rural areas and expansion of the rural employment guarantee scheme is envisaged. The government will also guarantee 25 kilograms of rice or wheat every month to families living below the poverty line, Patil said. Patil announced a policy of tackling terrorism head-on in the country that witnesses frequent attacks and bombings by Islamic militants and Maoist rebels. 'A policy of zero-tolerance towards terrorism, from whatever source it originates, will be pursued. Stern measures to handle insurgency and left-wing extremism will be taken,' she said. On India's foreign policy front, Patil said reshaping of relations with neighbouring Pakistan will depend on its 'sincerity' in preventing terrorist groups from launching attacks against India. Bilateral ties have hit a low as New Delhi has halted peace talks after over 170 people died in the Mumbai attacks last November which were carried out by the Pakistan-based Lashkar-e-Taiba (LeT). Patil said India's foreign policy will pursue the country's 'enlightened national interest,' maintaining its strategic autonomy and independent decision-making. Stating that working with neighbours will be accorded the 'highest priority,' Patil said the government will 'sincerely work with our neighbours to ensure that outstanding issues are addressed and the full potential of our region is realized.' The momentum to improve relations with major powers iso be maintained. 'The transformation of our partnership with the USA will be taken forward,' Patil said. She said the strategic partnership with Russia will be consolidated, sustained diplomatic efforts with Europe and Japan will be continued and the 'multi-faceted partnership' with China will be expanded. Reiterating the government's position, Patil said that India will 'contribute to all efforts at peace in West Asia through the establishment of a viable Palestinian state at the earliest (opportunity).' She also said traditionally close ties with Gulf countries will be strengthened.