As he prepares for the second term, Prime Minister Manmohan Singh on Sunday identified troubles in India's neighbourhood and global economic meltdown as the "immediate challenges" and expressed confidence that the clear mandate to Congress-led coalition would help tackle these challenges "effectively".

Addressing the Congress Working Committee, Singh also said the new government will continue with the policies and flagship socio-economic development programmes of UPA years besides implementing the promises made in party manifesto.

"Singh said the new government is assuming office in the backdrop of a deep global recession and serious troubles in the immediate neighbourhood.

"He said he was confident that the clear mandate received by UPA would enable the new government to respond to these two immediate challenges effectively," AICC General Secretary Janardhan Dwivedi quoted Singh as saying at the CWC meeting.

Singh did not elaborate on the problems in the neighbourhood but was apparently refering to troubles in Pakistan, Sri Lanka and Nepal.

In his address, Singh also lauded the role of Congress chief Sonia Gandhi for leading the party to a resounding victory besides appreciating the contributions made by Rahul Gandhi to revive the fortunes of the party across the country and specially Uttar Pradesh.