The Congress Working Committee (CWC), which met at party president Sonia Gandhi's official 10, Janpath residence here on Tuesday, backed the new economic reform programmes of the Manmohan Singh-led UPA government.

Congress general secretary Janardhan Dwivedi, who addressed the media after the CWC meet, said Sonia Gandhi has emphasized on the revival of Indian economy.

Dwivedi said the Congress President said that the improvement of the Indian economy is very important, and added that the government is taking effective steps in this regard.

The Congress general secretary informed that finance minister P. Chidambaram briefed the CWC members about the present economic situation prevailing in the country.

Dwivedi said that the Finance had been called in to explain the importance of the economic reforms announced by the government.

He said that Chidambaram told CWC that tough decisions were crucial for the economy. Dwivedi said that the finance minister told CWC that there were only three ways to improve economy - improve productivity, contain inflation, cut subsidy.

"The finance minister told us that if the economy is not stable then relief programmes for the poor will not be possible. He said that the value of the rupee should not fall further and investments should be encouraged," he added.

Dwivedi said that the CWC too backed the government's decision with party president Sonia Gandhi saying reforms were essential.

Dwivedi said that the Congress President also spoke about the role of the Bharatiya Janata Party (BJP), saying the main opposition party should play the role of a constructive opposition.

The Prime Minister, Dr. Manmohan Singh , had earlier on Friday defended his government's fresh economic reforms, saying these were needed to boost investor confidence domestically and globally.

"Where would the money for this have come from? Money does not grow on trees. If we had not acted, it would have meant a higher fiscal deficit, that is, an unsustainable increase in government expenditure vis-a-vis government income. If unchecked, this would lead to a further steep rise in prices and a loss of confidence in our economy," said Dr. Singh in his address to the nation.

He also accused the opposition of misleading the people and said the time had come to embrace "hard decisions" to revive the country's economy.

"The time has come for hard decisions. For this I need your trust, your understanding and your cooperation," he said, comparing the situation with what prevailed in 1991 when India embraced sweeping economic reforms.

Dwivedi also informed that there was no discussion on the Telangana issue during the CWC meet.

The CWC meet took place at a time when there was a clear realisation in Congress that the vexed issue of Telangana cannot be kept hanging for long. There were indications that a decision on the issue would be taken.

Andhra Pradesh Governor E S L Narasimhan had a meeting earlier with Gandhi, Union Home Minister Sushil Kumar Shinde and P. Chidambaram, which fuelled speculation that a decision in this regard might be taken.

Home Minister Shinde was not present in the CWC meeting today that was attended by a party general secretaries and special invitees, including Delhi Chief Minister Sheila Dikshit.