Prime Minister Atal Bihari Vajpayee on Tuesday admitted that eight per cent growth was difficult due to drought but was not impossible if the challenges were faced in unity, shunning political differences.

"I admit that eight per cent target is no doubt difficult due to severe drought. But it is not impossible if we show determination in setting aside political differences," Vajpayee said winding up the discussion on the motion of thanks to President's address in Rajya Sabha.

Elaborating on the president's address, Vajpayee said the president had highlighted the issue of connectivity in four areas- transport, knowledge, electronics and markets.

"We are committed to achieve this," he said adding the government was ready to bear the financial burden. When the government embarked upon the highway project, several apprehensions were expressed about its viability but now it was for everybody to see the achievements in this sector, he said adding the entire economic scenario has changed for the good in these areas.

The-Rs 7,000 crore (Rs 70 billion)-project taken up by government to establish road connectivity in villages was progressing well and already road connectivity had been established in 20,000 villages, he said.

There are still 160,000 villages not having road connectivity in the country and as a result of which they have been neglected economically, he said adding the government was committed to provide connectivity to these villages.

He said the government was keen on linking Srinagar with a rail line, a concept visualised by late Prime Minister Rajiv Gandhi, which could not materialise. "This is very important," he said adding fund crunch should not come in the way.

The prime minister said of the Rs 6,000 crore (Rs 60 billion) package announced by the Centre for the state, a major chunk of the allocation would be spent on linking the state by rail lines including taking train link up to Srinagar.

On electronic connectivity, Vajpayee said concerted efforts by the government during the last three years had led to increase in tele-density by three times to bring about rural connectivity.

With the establishment of internet connectivity in villages, the entire rural scenario was being transformed providing necessary market connectivity, he said adding this has improved the economy of the villages and some of the rural women now do business using mobile phones.

He said the Budget has taken seriously the president's emphasis on establishing  connectivity in four areas and Rs 60,000 crore (Rs 600 billion) has been apportioned for removing infrastructure bottlenecks in the country.

Vajpayee did not agree with senior Congress leader Pranab Mukherjee's views that savings as a proportion to gross domestic product was going down.

He quoted statistics to say that gross domestic savings had increased to 24 per cent of GDP in 2001-02 from 23.4 per cent in 2000-01. "Our savings have increased and have not come down", he said.