Financial Daily from THE HINDU group of publications
Saturday, Mar 04, 2006


News
Features
Stocks
Shipping
Archives
Google

Group Sites

Home Page - Economy
Industry & Economy - Foreign Direct Investment


`India on path for sustained growth'

Our Bureau

Seize opportunities in India, foreign investors told


THE CHAIRMAN of the US India CEOs Forum, Mr William Harrison III, and the Finance Minister, Mr P. Chidambaram, addressing a conference in the Capital on Friday. — Ramesh Sharma

New Delhi , March 3

The Indian economy is on course to achieve 8 per cent gross domestic product (GDP) growth on a sustained basis, the Finance Minister, Mr P. Chidambaram, has said.

"We are now in a position to say with a measure of pride that we believe we may have reached an inflection point in India's economic progress. That we could now well be on a road that takes us on a sustained basis to 8 per cent growth every year and gives us the capacity to dream for higher growth," Mr Chidambaram said at the conference on `Indo-US Economic cooperation' here on Thursday.

The Finance Minister asked foreign investors to seize the opportunities thrown up by India's desire to move from an 8 per cent growth path to 10 per cent growth level.

Stating that foreign investment would be extremely beneficial to India, Mr Chidambaram said the country would require about 4 per cent of GDP as foreign investments.

"Foreign investments play a crucial role. It brings us the extra investments to take the investment rate to a level where we can aspire for 10 per cent growth," he said.

While the savings rate in 2004-05 stood at 29 per cent, the investment rate was 30 per cent.

"However efficient an Indian economy is, a 30 per cent investment rate would only give growth rate of 7.5 per cent and 8 per cent. The goal is to raise 30 per cent investment rate to 32 and 34 and if possible 36 per cent. Some of this will come from increase in domestic savings i.e. 29 per cent moving to 30 and 31 per cent", Mr Chidambaram said.

On the power sector, the Finance Minister said the Government had already announced five ultra mega power projects, each with a capacity of 4,000 MW.

He said these projects would be given out on an international competitive bidding basis to the lowest bidder purely on tariffs and the award would be made on or before December 31 this year.

More Stories on : Economy | Foreign Direct Investment | Foreign Trade

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
One India plan by private operators under threat


Battle royal over Idea Cellular ownership
Storage spending shifting to software
`India on path for sustained growth'
Inflation rises on surge in mineral prices
US Govt not against outsourcing
Minister eats chicken, says it's safe
Reliance Energy, NTPC in talks with NPCIL for nuclear foray
Bush wants FDI caps to go
`FDI cap is no entry barrier for insurers'
Spanish PCB maker Cipsa to invest $15 m in India
TCS goes for brand image — Ropes in global consultant



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line