India's new Congress-led government has laid out plans for a wave of market-oriented economic reforms and a simultaneous push to improve the welfare of the poor – a tough balancing act that could strain the capacity of the bloated, sluggish state.

The outline of the policy priorities came today in an address by President Pratibha Patil, India's largely ceremonial head of state, to the newly installed parliament chosen in last month's elections that gave Congress a much enhanced public mandate.

Faced with slowing economic growth and a ballooning fiscal deficit, Ms Patil said the government intended to revive the stalled sell-off of minority stakes in state-owned companies. It is seeking to both accelerate growth and “steadfastly observe fiscal responsibility”.