Outlining the new government's agenda, President Pranab Mukherjee said the government led by Prime Minister Narendra Modi will create a policy environment which is "predictable, transparent and fair."
"It will embark on rationalisation and simplification of the tax regime to make it non-adversarial and conducive to investment, enterprise and growth," Mukherjee said, addressing the joint session of the two houses of parliament.
"Reforms will be undertaken to enhance the ease of doing business. My government will follow a policy of encouraging investments, including through FDI; which will be allowed in sectors that help create jobs and assets," he said.
For creation of jobs in the manufacturing sector, Mukherjee said the government will strategically promote labour-intensive manufacturing.
Referring to the recent slowdown in GDP growth, the president said the economy is passing through an "extremely difficult" phase and putting it back of track is a paramount task for the new government.
The Indian economy grew at below-5 percent for the second consecutive year in 2013-14, the worst performance in more than a decade. The country's gross domestic product (GDP) expanded by 4.5 percent in 2012-13 and is estimated to grow by 4.7 percent in 2013-14, according to the Central Statistics Office (CSO) data.
"We will work together to usher our economy into a high growth path, rein in inflation, reignite the investment cycle, accelerate job creation and restore the confidence of the domestic as well as international community in our economy," he said.
During his 55-minute address, Mukherjee said the government will make every effort to introduce the Goods and Services Tax (GST) while addressing the concerns of states.