Mumbai: Economic growth and the standard of living of the people are closely linked that a 10 per cent economic growth would be required to remove poverty and attain optimum employment levels in the country, prime minister Manmohan Singh said while addressing the nation on the 62nd Independence Day.

The government is taking all steps to check rising prices of essential commodities so as to insulate the poor from its impact, as it strives to strike a balance between equity and high economic growth,Manmohan said.

But, at current levels of economic activity, the economy is expected to grow at 7.5 per cent or 8.0 per cent, even by estimates of the prime minister's Economic Advisory Council.

The lower growth projection follows an oil spike that left economies the world over smarting under high inflation. The rate of inflation in India rose to a 16-year high at 12.44 per cent in the first week of July on the back of higher global prices of fuel and food.

To fight the rising energy cost, we need to harness cheaper and efficient sources of power, Manmohan said, adding, the Indo-US civil nuclear co-operation aims at that.

Addressing the nation from the ramparts of the Red Fort on Independence Day, the prime minister said that the government has taken a sincere effort to keep each of its promises.

''We have given a new deal to rural India'', he said, highlighting various steps taken for the growth of agricultural sector, the prime minister said that we have increased the bank credit for the sector from Rs81,000 crore to Rs2,25,000 crore during the past four years.  ''Our farms are once again green. Our godowns are once again filling up. Our farmers are once again hopeful about their future and their welfare,'' he added.

Manmohan took the opportunity to point out that the government has taken important initiatives on the 'Seven Sutras', a term coined by him four years ago, as priorities namely, agriculture, water, education, health care, employment, urban renewal and infrastructure. The prime minister emphasised that ''India will be transformed only when every Indian is literate, well fed, healthy and can secure gainful employment.'' 

''I know how much each one of you is concerned about the recent rise in prices. In many developing countries the rate of inflation is double that in India. Our government has worked hard to ensure that in India the rate of inflation is not as high as in many other countries,'' Manmohan Singh said.

The prime minister further stressed that his government has been paying special attention to the development of education in the country.  He said ''we are establishing 6,000 new high quality model schools, with at least one school in each block.'' As many as 373 new colleges are being opened in backward districts besides 30 new universities, 8 new IITs, 7 new IIMs, 20 new IITs, five new Indian Institutes of Science, 2 Schools of Planning and Architecture, 10 NITs, and a 1000 new polytechnics.

Wanting to see a modern India imbued by a scientific temper, the prime minister said ''this year, we hope to send an Indian spacecraft, Chandrayan, to the moon. It will be an important milestone in the development of our space programme.'' 

Promising to continue striving for the development and prosperity of the country, Manmohan assured ''We will work hard to take the country to greater heights in all fields.''

Underlining the need for atomic energy, the prime minister said that the nuclear agreement being negotiated with developed countries will not only end India's nuclear isolation, but also enable us to provide electricity to meet the needs of farmers, artisans, traders and industry. The prime minister mentioned in his speech that recommendation of Sixth Pay Commission is a step in making government more efficient.

Stressing upon the government's resolve to meet the challenge of terrorism, the prime minister urged upon the state governments, all political parties, civil society groups and social and religious leaders to cooperate in rooting out terrorism from the country.  Initiatives being taken to promote peace and stability in the North Eastern region and J&K will be taken forward, the prime minister said.

Referring to the issue of providing the best facilities to the pilgrims of Amarnath Shrine, Manmohan said that it can only be resolved in an atmosphere of peace and goodwill.  He appealed to the people of Jammu & Kashmir to cooperate in establishing peace in the state.

Calling for defeating the terrorism, the prime minister emphasised that the terrorists and those who support them are enemies of the people of India and Pakistan and of peace in the region and the world. ''If this issue of terrorism is not addressed, all the good intentions that we have for our two peoples to live in peace and harmony will be negated'', he added.

''Let us resolve today to stand together, to strengthen the unity and integrity of our country and to stand firm in our determination to build a new India of our dreams,'' the prime minister concluded.  

(See: Prime Minister Dr Manmohan Singh's Independence Day address)