Expecting better economic growth this year: PM

New Delhi: Prime Minister Manmohan Singh on Wednesday hoped economic growth to be a little better this year than 6.5 per cent last fiscal.

Addressing the nation on the occasion of Independence Day from Red Fort, he said, "Growth is also getting affected due to domestic politics. Our aim should be to work together towards the nation work together towards the nation.”

He said the government will continue efforts to bring more transparency, accountability in work of public servants and will reduce corruption.

India's national security will be affected if steps are not taken to increase economic growth and encourage new investments in the country, the Prime Minister said on Wednesday.

Prime Minister Manmohan Singh also sought help of political parties in passing Lokpal Bill in Rajya Sabha.

In his Independence Day address, the Prime Minister said that his government will work hard to shield Indian economy from the impact of global economic slowdown.

However, this would require creating an environment which "we are not being able to achieve ... because of a lack of political consensus on many issues. Time has now come to view the issues which affect our development process as matters of national security," Singh said.

He cautioned if the economic growth is not increased, new investments are not encouraged, the government finances are not improved and livelihood security of the common man and energy security of the country are not ensured, "then it most certainly affects our national security".

Addressing the nation from the ramparts of the Red Fort, Singh said the global economy, which is passing through a difficult phase, has adversely affected India as well.

"Also, there have been domestic developments which are hindering our economic growth. Last year our GDP grew by 6.5 per cent. This year we hope to do a little better," he said.

While not much can be done about the conditions prevailing outside the country, "we must make every effort to resolve the problems inside our country so that our economic growth and creation of employment opportunities are again speeded up," he said.

On inflation, Singh said while it must be controlled, bad monsoon this year would pose some difficulties. While wholesale inflation has come down to 6.87 per cent in July, prices of food items are still rising by over 10 per cent annually.

Singh said the government has taken steps to deal with deficit rains. These include giving diesel and seed subsidy to farmers in drought affected areas.

Highlights of the Prime Minister's speech:

- Lack of political consensus on several issues is hampering economic growth

- India to launch a spaceship to explore planet Mars

- A scheme being formulated for distribution of free medicines through government hospitals and health centres

- Bad monsoon poses difficulty in controlling inflation

- Rajiv Housing Loan Scheme to be launched soon for relief on interest in loans upto Rs 5 lakh for economically weaker sections

- Assam violence very unfortunate; Will make every effort to understand reasons behind it to ensure it is not repeated

- I want to assure the nation that Indian Army is capable to face any challenge

- We have formed a committee to look into pension for ex-servicemen. We will take a decision on the recommendations of the committee

- National Skills Development Authority to skill 8 crore youth in the next 10 years

- The Pune incident points to need for much more work in the area of national security

(With additional inputs from PTI)