Allaying fears of rising inflation, pressures on the balance of payments and sovereign credit-rating outlook, Mr Sinha reaffirmed the government's commitment to economic reforms.

Speaking at the annual Economic Editors' Conference here, Mr Sinha outlined his strategy to ensure seven per cent growth this fiscal. This includes pushing through pipeline power sector projects, expediting the prime minister's north-south national highway scheme and imparting momentum to the economic reforms programme by taking up important legislations during the forthcoming winter session of the Parliament.

To spur investment in the power sector, Mr Sinha said that he will soon call a meeting of financial institutions and power ministry representatives to help independent power producers achieve a speedy financial closure. This, he felt, would help in generating demand for electrical equipment. He also hoped that road project would create additional demand for cement.

Other sectors witnessing a slowdown include pulp and paper and commercial vehicles. Mr Sinha said that he will be looking forward to the suggestions of the chambers of commerce and industry before announcing corrective steps.

The chambers are expected to submit their list of suggestions to the government later in the week.

On the policy front, Mr Sinha proposes to pursue legislative measures, signalling that India is going ahead with the reforms programme, at a pace which the country feels is correct.

The legislations in the pipeline include the fiscal responsibility act (FRA), amendments to the Banking Nationalisation Act (BNA) to permit banks to raise funds from the capital market, SICA and a bankruptcy law to tackle industrial sickness, competition policy, revenue package for special economic zones and labour laws.

Mr Sinha said FRA and amendments to the BNA will be introduced in Parliament during the winter session. Other issues will be taken up subsequently. He further said that the government was examining the expert group report on competition law. The group of ministers on labour laws will shortly present its report to the government.

Replying to a question on whether the country has missed the bus (in the international marketplace), Mr Sinha said: ``The fact is that the bus cannot start unless we are in it. Nobody can afford to ignore us.'' Sinha expressed confidence over the improved FDI inflows and comfortable forex reserves to meet the burgeoning oil import bill.

While reacting to the downgrading of India's credit rating by Standard and Poor's, Mr Sinha said that it was not cause for any great concern, as forecasts of prophets of doom have been proved wrong in the past.

``I am not hazarding a guess on the GDP growth. But on the basis of my experience during 1998-99, when a gloomy scenario was projected with a growth rate of 3.5 per cent to four per cent and the actual growth rate stood at 6.8 per cent, now I am confident of a reasonable growth for the present year,'' Mr Sinha said.

Mr Sinha added that India will continue to achieve a high growth rate this year with fiscal deficit contained at 5.1 per cent and ruled out the chances of whether the country will wilt under the pressure from the World Bank, the World Trade Organisation or the MNCs to bring in drastic changes in policies.

``We are fully in control of the fiscal situation, both as a result of strict expenditure control and also buoyant revenues. Fiscal deficit will be contained at the budgetary level of 5.1 per cent of GDP.'' While the surge in global oil prices are sure to push India's oil import bill to $18 billion, Mr Sinha said the situation was manageable given India's foreign exchange reserves of more than $35 billion.

Later, chief economic advisor Shankar N Acharya said that though the foreign exchange outgo has increased on account of higher prices in the international market, the situation is `manageable,' given the `comfortable' reserves position.

The minister pledged to protect Indian industry from unfair business practices by overseas firms, but cautioned the domestic companies will have to learn to fend for themselves in the new economic climate. "There is no getting away from it. Increasingly, more and more competition will be experienced in the domestic market. We have to prepare for it", he said.

While talking to newsmen on the sidelines of the conference, Mr Sinha added that he did not forsee any pressure on interest rates due to rise in inflation rate and large government borrowing. "I don't see any further pressure building on it (interest rate)," he added.

Mr Sinha asserted that there was no let-up in the disinvestment programme and expressed confidence that the strategic sale of Air India and Indian Airlines wil be complete by March 31. "We have appointed advisers for disinvestment of state-owned companies and hopefully, most of the decisions taken on disinvestment will be implemented by March 31", he said.