New Delhi: Government on December 3 forecast that economy would grow by 5-5.5 per cent despite widespread drought in the country and promised to accelerate economic reforms including disinvestment and foreign direct investment (FDI).

Identifying four key areas for emphasis, Finance Minister Jaswant Singh said in the mid-year economic review, presented in Parliament, structural reforms, fiscal consolidation, accelerating infrastructure and employment oriented investment needed to be pursued.

The review, made by the government for the first time, gives indication over the shape of government policies that would be announced in the next budget.

"Disinvestment is an integral part of reform process. Disinvestment has proceeded by building up a political consensus across a wide spectrum of opinion," Singh said while underplaying sharp differences within the government on the divestment process.

Stating that disinvestment should be taken up essentially to unlock the productive potential inherent in PSUs, Singh said it should not be "viewed purely from revenue perspective".

Asserting that acceleration of FDI was a high priority, he said proposal by a high- powered committee (headed by N K Singh) was now under consideration of Group of Ministers and would be given importance.

PTI