NEW DELHI, June 4, 2009 (AFP) - India's new government promised measures to spur growth and help the country's vast poor population, and announced economic reforms as it spelled out Thursday its priorities for the next five years.

The economy expanded by 6.7 percent in the year to March 2009, down from nine percent a year earlier, and the left-leaning Congress government said it is likely to slow more this year.

"The current financial year is expected to see a slowing down of growth on account of the global recession," President Pratibha Patil told parliament, presenting the government's second-term agenda.

"Our immediate priority must be to focus on management of the economy that will counter the effect of the global slowdown by a combination of sectoral and macro-level policies," she added.

Patil's speech to parliament came after the Congress party was swept back to power last month with its biggest seat tally in 18 years.

The growth efforts, she added, would be accompanied by an expansion of public investment to improve the country's dilapidated ports, rail, road and other infrastructure - seen as key hindrances to growth.

"Financing the investment will be a critical constraint" in light of the global financial credit crisis, she said.

But the government was determined to ensure that funds were available "consistent with a medium-term strategy of prudent fiscal management," she said.

Economists have expressed worries that the government's stress on growth could mean a further ballooning of India's fiscal deficit, which is at a seven year peak of 6.2 percent of gross domestic product.

New Delhi would also encourage public-private partnerships for infrastructure improvement as well as list minority stakes of public sector companies as part of economic reforms.

"Foreign direct investment needs to be encouraged through an appropriate policy regime," Patil added.

Stressing the government's commitment to raise the living standards of the country's poverty-ridden millions who were key to the Congress victory, she pledged more low-cost housing, subsidised food and an overhaul of public food distribution, which suffers from widespread corruption.

Patil said the government would also expand the reach of its popular National Rural Employment Guarantee scheme, seen as having boosted the party's fortunes in the election.