A law to deal with communal violence is on the anvil, President A P J Abdul Kalam said on Friday.
The government will deal resolutely with any attempts to spread communal violence, he said in his address to the joint sitting of Parliament marking the commencement of the Budget session.
"My government will deal resolutely with any attempts to spread communalism, disturb law and order and deny a life of peace and security to any citizen," he said in the address he read out from his laptop placed on the podium.
He said the government is determined to deal with all threats to peace and national security.
"It will not hesitate in taking any steps required to deal with terrorism or attempts to spread disaffection and disturb law and order," Kalam said.
Kalam said cross-border terrorism in Jammu and Kashmir, insurgency in the Northeast and Naxalite violence are the three main areas of challenge to national security.
He said the government would deal effectively with any group challenging a democratically elected government and resorting to use of arms.
In his 24-page address at the Central Hall of Parliament, Kalam said relations with Pakistan are important for peace, stability and prosperity in the neighbourhood.
"However, the process of normalisation depends on Pakistan ending its support to terrorist activities," he said.
On Nepal, where King Gyanendra seized power less than a month ago, the President said the country's problems could only be addressed by monarchy and democracy working together.
On the country's economic scene, he referred to a high inflation rate of eight per cent in August last year and noted that it had come down to five per cent later.
"My government is committed to reining in the rate of inflation as it hurts the poor the most. The government will remain steadfast in its resolve to hold the price line and protect the real incomes of the poor."
Kalam said the government was committed to giving a "New Deal to Rural India" that will include reversing the declining trend in investment in agriculture, stepping up credit flow and enhancing public investment in irrigation and wasteland development.
Elaborating on the internal security challenges, he said, "My government is fully alive to the internal and external challenges to our national security. It will not hesitate in taking any step required to deal with the threat of terrorism or attempts to disturb law and order," he said.