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Akshay
21 Sep 05,, 21:14
GDP can grow to 9 percent, says FM

Suman Guha Mozumder in New York | September 21, 2005 21:58 IST


India's Finance Minister P Chidambaram said Wednesday that India can raise its GDP to 9 percent if the country is able to develop its infrastructure and mobilize the investment.



"Money is flowing into the country and if we can mobilize these investments and channel them into infrastructure development, India's GDP will easily rise to 9 percent a year, " Chidambaram said addressing the second annual India Investment Forum here in New York September 21.



Chidambaram, who also addressed the forum last year, said in his keynote address that the most important thing for India is to focus on infrastructure development.



"India today has built huge capacity for almost every type of industry but to support this we need to pay much greater attention to infrastructure," he said.



About 300 guests including institutional investors from American companies attended the keynote address at the Pierre hotel in midtown Manhattan.



He said the government has understood the importance of building infrastructure because without much better infrastructure, it will not be possible to do justice to the GDP growth rate.



Saying that the focus of his pitch is on infrastructure today, he appealed to prospective investors to come to India where a whole lot of opportunities exist, including in power, roads, shipping oil and gas and aviation.



"The government is determined to put in a world class infrastructure to push all round growth," he told the audience.



The minister noted that while the FIIs have been coming to India, the FDI has not really measured up to expectations. He said that the fault may lie with the government for not being able to project properly the attraction for FDI.



"That is why I am here today to address the concerns that people may have on FDI," he said. "I wish to say that if India is good enough to attract FIIS, India is good enough to attract FDI as well."



Earlier, Stan O'Neal chairman and CEO of Merrill Lynch and Company made a brief presentation on India, highlighting its strengths and achievements in recent years.



Among those who addressed the morning session were A K Purwar, Chairman of the State Bank of India and M Damodaran, Chairman of the Securities and Exchange Board of India.

http://in.rediff.com/money/2005/sep/21chidambaram.htm

Sameer
21 Sep 05,, 21:16
I think that we should create an India economics discussion thread in stead of 100 threads about the same topic.

there is a BIG IF in there

India can grow at double digit figures IF it pursues the reform ageda agressively.

Akshay
21 Sep 05,, 21:36
I think that we should create an India economics discussion thread in stead of 100 threads about the same topic.

there is a BIG IF in there

India can grow at double digit figures IF it pursues the reform ageda agressively.

I agree with you about creation of a saperate Discussion thread exclusively for Indian economy.

indianguy4u
22 Sep 05,, 02:11
China spends yearly billions of dollars on infrastucture, thats why there growth is nearly double digit. We wont be anywhere by our miniscule spending.

Karthik
22 Sep 05,, 02:29
This talk of investment in infrastructure has been doing rounds for quite some time now.

There was talk of using the high forex reserves to fund infrastructure projects. But in my opinion, it has to be done in tandem with changes to our labour laws.

But with the communists in power, that is but a mere thought.