New Delhi  - Prime Minister Manmohan Singh said Saturday that the biggest challenge facing India was to return to 9-per-cent economic growth as the country celebrated its 63rd Independence Day while facing a serious drought.

More than a quarter of India's 646 districts have been declared drought-hit by the government after poor annual monsoon rains, on which farmers depend heavily.

Singh, in a speech delivered from the ramparts of the historic Red Fort in the Indian capital, pledged all possible government assistance to farmers to deal with the drought.

"Restoring our growth rate to 9 per cent is the greatest challenge we face," Singh said. "We expect that there will be an improvement in the situation by the end of this year."

Impacted by the global economic downturn, India has projected that growth in its gross domestic product would be 6 to 6.5 per cent in the current fiscal year, which ends March 31, but experts said they fear a setback to the farming sector might pull growth down further.

Singh said his government was taking steps to arrest rising prices of basic food items and talked of introducing food-security legislation to ensure the poor would not go hungry.

The prime minister delivered his speech from behind bullet-resistant glass as a tight security was imposed around the Red Fort.

Recent intelligence reports had said Islamic militant groups based in neighbouring Pakistan and Bangladesh were planning terrorist attacks in India on or around Independence Day. (dpa)