"Starting today, our government has set itself the task of implementing our agenda for a proud, prosperous India" he said.

In his first speech since his BJP-led coalition won the election nearly two weeks ago, Mr Vajpayee said he would tackle government corruption and operate what he called a "zero tolerance" policy towards terrorism.

BBC Delhi correspondent Daniel Lak says the latter point is a reference to fears in India of a resurgence of militant activity in Indian-administered Kashmir following the army coup in Pakistan.

The BBC's Daniel Lak in Delhi reports on Mr Vajpayee's vision of India in the next millennium

India blames the Pakistani military for the militant separatist activity in Indian Kashmir.

In the speech broadcast across India, Mr Vajpayee said his coalition, the National Democratic Alliance, had representatives from all over the country and from most walks of life.

Mr Vajpayee said he wanted his government to build a strong, prosperous and tolerant India, free from discrimination and insecurity.

Liberal values

Our correspondent says the speech shows the prime minister is keen to assert his own moderate liberal values over some of the more hardline Hindu nationalist feelings of many of his BJP colleagues.

Mr Vajpayee's election buoyed investor confidence on India's stock markets

Mr Vajpayee also made a number of promises to improve the lot of India's hundreds of millions of rural poor, including the provision of clean water, health care, education, new roads and housing.

He also talked about the need to create jobs for all Indians.

On the economy, he said his government would increase the pace of free market economic reform and introduce a modern regulatory framework for the financial markets.

Years of unstable coalition governments and political uncertainly have undermined confidence in Indian financial markets.

Mr Vajpayee now appears set to head one of the strongest and longest-serving governments in recent Indian history.