Finance Minister P Chidambaram has said that India can attain a sustained economic growth of 9-10 per cent over the next seven to 10 years with right fiscal discipline.
Observing that there was need for expansion and reform of banking, insurance and pension sectors to mop up additional resources for long-term investment, he said the growth rate could even cross 10 per cent with good monsoon coupled with "right policies, new initiatives and better governance."
But that would require a mix of right policies, new initiatives and better governance, Chidambaram told a select audience of investors and analysts.
He said the government plans to bring a bill in Parliament to lift the voting cap of 10 per cent on foreign investors in the banking sector and reiterated government's view that the percentage of foreign investment in insurance sector should be raised from 26 to 49 per cent.
Chidambaram, however, did not specify the limit to which the cap on voting rights is proposed to be scaled up, saying that the government is having consultations with its political partners and final figures would depend on the consensus achieved.
Talking about investment opportunities in India, Chidambaram said the country needs $320 billion to upgrade its infrastructure over next five years.
The country would be able to find $200 billion from its own resources but a foreign investment of $120 billion would be needed, he said.