Problems within Country Affecting Economic Growth: PM

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 percent in July, prices of food items are still rising by over 10 percent 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.

In the backdrop of criticism from some foreign investors that the Indian policy environment was not conducive for business, Singh said "we have to create confidence at the international level that there are no barriers to investment in India".

On employment, Singh said his government will work hard for creation of new job opportunities for youth.

"Creation of new employment opportunities is possible only when we encourage industry and trade. For this we need to speedily improve our infrastructure," he said adding government will spare no effort to encourage investment.

On infrastructure sector, Singh said steps will be taken to increase investment with the help of the private sector.

The 12th Five Year Plan, which will be approved by the National Development Council this year, envisages $1 trillion investment in the infrastructure sector.

"The Plan would determine the future course of action on all important matters relating to the country's development. It would lay down measures for increasing our present rate of economic growth from 6.5 to 9 percent in the  last year of the Plan," the Prime Minister added.

The Plan would focus special attention on areas important from the point of view of reaching the fruits of development to all and specially to the weaker sections of our society, he said.