India celebrates Independence Day amid tight security; PM promises to tackle inflation, terrorism

Following recent bomb attacks in Bangalore and Ahmedabad and violent protests in northern Kashmir, thousands of security personnels surrounded the historic Red Fort where Singh unfurled the national flag to a 21-gun salute before addressing the nation.

Speaking on the occasion, Singh said the present government, when it came to power, had no promises to make but "promises to keep."

The prime minister said the government had taken initiatives for the growth of the agricultural sector and has been paying special attention to the development of education in the country.

"India will be transformed only when every Indian is literate, well fed, healthy and can secure gainful employment," Singh said.

Singh said in his speech that recommendation of Sixth Pay Commission is a step in making the government more efficient.

The prime minister also said he hoped the tension in the northeastern region and Jammu & Kashmir would ease and peace and prosperity would prevail. Political tension, Singh said, can only be resolved in an atmosphere of peace and goodwill.

Noting that the poor people were worst affected by the high inflation rate, Singh said the government is "taking determined measures to bring prices under reasonable control."

"I know how much each one of you is concerned about the recent rise in prices. The inflation we have seen this year is basically due to external factors. Our Government has worked hard to ensure that in India the rate of inflation is not as high as in many other countries. We have also taken special measures to insulate the poorer sections of our society from the full impact of rising food and fuel prices," the prime minister said.

"However, while making these efforts we should avoid doing anything which hurts our growth," he added.