Stating this in an interview in the forthcoming issue of the India Today, the prime minister also said that the government will soon announce major initiatives aimed at putting the fiscal deficit in order. It also plans to take "credible measures" to strengthen the financial system to avoid the mistakes made by the south-east Asian countries.

Vajpayee complimented finance minister Yashwant Sinha's performance. "In these trying times, I think Yashwant Sinha is doing a very good job," he said.

The government also plans to take policy initiatives on the basis of the recommendations made by the six task forces appointed by the Council on Trade and Industry. The sixtask forces have been appointed to give recommendations on capital markets, agro-processing, infrastructure, financial sector reforms, service sector and legal and administrative changes.

Vajpayee said the government had also begun a major exercise to increase the growth in areas where the country had a competitive advantage. The areas include software, agriculture and pharmaceuticals.

He said that the decision taken by his government to remove infrastructure bottlenecks, especially in the power sector, will begin to yield results soon.

He stated the government was also planning radical public sector reforms aimed at generating a higher return for the nation on its investments in the public sector.

"We will create an environment that attracts the best NRI and foreign talent to come and work for our benefit, instead of the other way round," the PM said in the interview.

In order to achieve a 7-8 per cent GDP growth in the next few years, it is critical to increase investment opportunities inagriculture and industry, accord high priority to infrastructure development, promote information technology, restore buoyancy to the capital and reinvigorate the entrepreneurial spirit.

On the issue of self-reliance, he stated that self-reliance should not be equated with isolationism. "We are living in an increasingly inter dependent world where globalisation is an undeniable reality. The challenge before India is how to strengthen our national economy by seizing the opportunities of globalisation and yet be able to successfully ward off attendant dangers," he said.