"During the current year, the economy is expected to grow over 6 per cent," he said.

"However, unless India grows in the coming years at a rate of at least 7 to 8 per cent, there is no way we can eradicate poverty and unemployment," Narayanan said.

The President was giving a customary speech laying out the policies of the new government.

The government will review the existing foreign direct investment (FDI) regime to bring greater transparency and aim for FDI inflow of at least $10 billion a year, Narayanan said.