India can grow by 10 per cent with reforms: ADB
ADB says India can sustain 8% economic growth but asked Govt to improve infra and carry forward reforms to attain a 9-10% rate.india Updated: Mar 10, 2006 14:03 IST
Asian Development Bank said on Friday that India can sustain 8 per cent economic growth but asked government to improve infrastructure and carry forward reforms to attain a higher growth of 9-10 per cent.
"Eight per cent growth is sustainable in the coming five years or more. If infrastructure is improved and economic reforms are continued, the rate of growth can be accelerated to 9-10 per cent," ADB president Haruhiko Kuroda told reporters at a press conference.
Considering India's high growth prospects and greater funding requirement, ADB is planning to raise $300-400 million from the domestic bond market and step up lending to the country.
Kuroda said ADB's assistance to India will be about $2.25 billion in 2005-06, which will go up to 2.45 billion dollar next fiscal and further to $2.65 billion in 2007-08.
Stressing on infrastructure sector, he said ADB will focus on three major sectors -- transport, power and water.
Though high global oil prices continue to pose a major threat to most oil importing countries, Kuroda said the prices will decline gradually in the short run (2-3 years) but in the long run they will rise.
The price of global crude oil will not come back to the previous level of 20-25 dollar a barrel, he added.