India can grow by 10%: ADB
Asian Development Bank says economic reforms need to be pushed further, especially in the power sector.india Updated: Mar 11, 2006 18:01 IST
Warning that poor infrastructure came in the way of high growth, Asian Development Bank on Friday said economic reforms needed to be pushed further, especially in the power sector.
"Eight per cent growth is sustainable in the coming five years or more if infrastructure is improved and economic reforms are continued," ADB president Haruhiko Kuroda told reporters at a press meet in New Delhi.
"The rate of growth can even be accelerated to 9-10 per cent," he further said.
He praised the budget for steps to contain fiscal and revenue deficits and said: "Prudent fiscal management is of basic requirement for further high growth."
On the Government's massive investment plan in social sector, he said it is appropriate to achieve growth with equity.
With growth in economy, poverty is reducing but still there is a sizeable population living below poverty line, he said, adding that growth must be inclusive.
ADB support to infrastructure sector will improve in the coming years focussing on power, transport and water projects.
Pointing to huge investment required in infrastructure sector, he said though small, ADB will step up financial assistance to 2 or 2.5 or even $3 billion a year.
ADB's assistance to India will be about $2.25 billion in 2005-06, which will go up to $2.45 billion next fiscal and further to $2.65 billion in 2007-08.