Union finance minister P Chidambaram, who flew into London to inaugurate India Infrastructure Finance Company (UK) Ltd, an off-shore subsidiary of IIFCL, told bankers and top NRIs businessmen here that the opening of the IIFCL in the second most important financial market signified India’s economic success story.
He said that India would register a growth rate of more than 8 per cent despite the global gloom arising from the economic slowdown. This would keep India at second spot on the list of rapidly growing economy and the pressure on infrastructure will only increase, he said, adding that India is the best destination for investment.
The fact that India is facing severe infrastructural problems should be "treated as a cause of celebration - a celebration of India's growth story," he pointed out, adding that the problems were being caused by rapid economic growth and high growth rate.
He recalled that in the 1990s after the economy had been liberalised, India for a couple of years had registered between 7 and 7.5 per cent growth rate. "However, this momentum could not last for long as analysis showed infrastructure could not cope with the pressure and the growth slipped," he said.
IIFL (UK) expects to provide foreign exchange funding for several infrastructure projects in India.