New Delhi: Prime Minister Manmohan Singh today outlined five challenges, including improving financial system for global integration, for India to become a developed economy while cautioning that the rapid progress should not lead to complacency.

"It would be wrong to assume, as some do, that the major development challenges had been solved and that the Indian economy can effortlessly coast towards becoming a developed economy," Singh said while releasing 'India Rural Infrastructure Report' by economic think-tank NCAER.

"Despite a high level of public debt, inflation has been contained and in brief the economic environment facing the private sector has been transformed and the results are evident," he said.

Giving policy prescription for each of the five challenges -- revitalisation of rural economy, improved delivery of public services, improved management of urban areas, preparing financial system for greater inclusion and increased global integration besides facilitating private investment in infrastructure, he said "we must not be complacent." He said rapid growth was needed to provide hope and productive employment for millions of young people joining the labour force each year and to accelerate the reduction of extreme poverty.

The Prime Minister said it was heartening to note that growth process that began with the external sector and services, has now spread to manufacturing.