New Delhi: Ahead of the Budget, Prime Minister Manmohan Singh today (June 24, 2004) said Government will create a single market for manufactured and agri-products, announced an energy policy package and pursue economic reforms to give "new deal" to rural India.

"I would like to see creation of a single market across the country for both manufactured and agricultural produce with encouragement of agro-industry linkages. With the introduction of value-added taxation, this integration of the Indian market will be further enabled," Singh said in his first broadcast to the nation after becoming Prime Minister.

Regretting that there has been "no helping hand" to farmers who have been in distress in many parts of the country, Singh said there has been a neglect of their interests in recent years and this was reflected in a significant slowing down in agricultural growth in the past five years.

The UPA (United Progressive Alliance) Government's Common Minimum Programme was committed to giving a "new deal" to rural India. Agriculture must receive the priority attention it deserves. Public and Private investment in agriculture has to be greatly increased, he said, adding there are still too many internal barriers to farm trade that must go.

Higher rates of economic growth, urbanisation and the modernisation of agriculture will continue to increase the demand for energy; Singh said, "We will evolve an energy policy package that will cover all sources of energy and will address all aspects like energy security, access, availability, affordability and pricing, efficiency and environment."

Observing that much of the focus of reforms in the past decade was on reducing the role of Government in controlling the private sector, Singh said, "We will pursue economic reforms and widen space for individual initiative and enterprise."

"But even as we do so, we cannot forsake the obligation of running a Government that works for the people. The reforms in administration and public institutions to improve efficiency and the quality of delivery of services would be our immediate priority," he said.

A key concern in agriculture in recent years had been the lack of access to credit, he said adding, "Our Government is already addressing the issue directly, by pursuing policies that improve the farmers' access to affordable credit."

"I would like to see the emergence of new centres of excellence in agriculture as we have in technology and management. There has to be a sharper focus on expanding opportunities in gainful employment in agriculture and in off-farm rural activities," the Prime Minister said.

The Government would also re-examine those policies that prevent creative interaction of farmers and agro-industries, he said.

Referring to rapid urbanisation, Singh said Government would give special attention to policies that could encourage urban development and renewal through active public-private partnership in building infrastructure.

In his 26-minute address, which focused on the country's economy ahead of the presentation of the Union Budget on July eight, Singh said Government will create a single market for manufactured and agri-products, announce an energy policy package and pursue economic reforms to give "new deal" to rural India.

Singh, who as the Finance Minister in early nineties had launched the liberalisation process, asserted the Government would pursue economic reforms and widen the space for individual initiative and enterprise.

He said the National Common Minimum Programme had been prepared keeping in mind the priorities brought into focus by the people's mandate.

On the foreign policy front, Singh said India will actively pursue the composite dialogue with Pakistan and is "sincere" about discussing and resolving all issues, including Jammu and Kashmir.

"We recognize that resolution of major issues requires national consensus and accommodation of public sentiment in both countries," he said.

In remarks ahead of the crucial Foreign Secretary-level talks this weekend, he said "we desire to live in a neighbourhood of peace and prosperity. We will actively pursue the composite dialogue with Pakistan. We are sincere about discussing and resolving all issues, including Jammu and Kashmir".

Singh said his Government would continue the process of dialogue with Hurriyat Conference and all other groups in Jammu and Kashmir to bring peace in the troubled state while combating terrorism with all the resources at its command.

"The Government is willing to talk with all disaffected groups provided they shun the path of violence," he said.

Observing that internal security remained an "important challenge", he said terrorism posed a grave threat to the unity and progress of India. "We shall combat it with all the resources at our command. There shall be no doubt whatsoever about our resolve to deal with this insidious threat to our nation," he said.

The previous NDA (National Democratic Alliance) Government had initiated talks with separatist Hurriyat leaders with the then Deputy Prime Minister L K Advani holding two rounds of parleys earlier this year.

India, Singh said, would maintain a credible minimum nuclear deterrent along with a policy of 'no first use' in its nuclear doctrine.

"India is a responsible nuclear power, and we will continue to work to prevent proliferation of weapons of mass destruction," he said.

"At the same time, we remain committed to the goal of universal nuclear disarmament," Singh said.

Observing that the Government would streamline defence acquisition procedure, he said this would allow the forces to obtain the modern weapon system and technology. "Our Government will ensure that the necessary funds are made available for these purposes," he said.