NEW DELHI, 26 October 2006 — India’s new Foreign Minister Pranab Mukherjee yesterday said double-digit growth rate and peace with Pakistan were his immediate priorities.

“Our objective is to have sustained economic growth in the range of nine to 10 percent (in the next year) and higher growth after that,” said Mukherjee, who was transferred from defense to the Foreign Ministry by Prime Minister Manmohan Singh on Tuesday.

“For that, we require investment and access to technology and we also require to have peace and tranquility in our periphery,” Mukherjee said. India’s neighbors include archrival Pakistan.

“It is desirable to live in peace and a tension-free atmosphere (with Pakistan),” the minister said. “We cannot alter our neighbors, therefore it is desirable... to create a tension-free neighborhood.”

Mukherjee’s comments came as diplomats from India and Pakistan were preparing to meet next month to restart a peace process stalled after New Delhi accused Pakistan of involvement in the July train bombings in India’s financial capital Bombay.

Prime Minister Manmohan said his government has “credible” evidence of Pakistan’s involvement in the Bombay train bombings, media reports said yesterday.

“All I can say is that we have credible evidence,” Manmohan said when asked about comments made by Indian National Security Adviser M.K. Narayanan, that there was good but not “clinching” evidence of the role of Pakistan’s spy agency, the Inter-Services Intelligence (ISI), in the blasts.

Manmohan, whose remarks were reported in Indian national dailies, was speaking to reporters on Tuesday night after the induction of new ministers in the United Progressive Alliance (UPA) government. Manmohan’s comments have been viewed as an attempt to put to rest questions over the quality of proof India has on alleged Pakistani involvement in the blasts.

On the question of preventing terrorism from across the Bangladesh border, Mukherjee said use of force cannot be an option.

“India had raised the issue with Bangladeshi Prime Minister Khaleda Zia when she visited India in April this year,” Mukherjee said adding “India has told Bangladesh that curbing terrorist activities would be in the interest of both the countries.”

India, regarded as Asia’s fourth-largest economy, has been growing at a rate of more than eight percent for the past three years but the government is looking to reach 10 percent growth. Mukherjee’s return to foreign affairs was part of a Cabinet reshuffle that saw A. K. Antony, a former chief minister of the southern Indian state of Kerala, take his place at defense.

Mukherjee, a veteran Congress party leader from West Bengal state, was also foreign minister from 1995 to 1996.

M. H. Ambareesh, a film actor-turned Congress politician, and Jayprakash Narain Yadav of the government’s coalition partner Rashtriya Janata Dal (National People’s Group) were also sworn in as junior ministers.

The Foreign Ministry post fell vacant last November when then-minister Natwar Singh was charged with receiving kickbacks in an investigation into the United Nations oil-for-food program in Iraq.

A.K. Antony, who took charge as the defense minister yesterday, said he would protect national interests at all levels. Antony held discussions with top officials of his ministry, including Defense Secretary Shekhar Dutt.

“They briefed me on important issues. Some important areas like modernization of the armed forces and the problems were discussed.”