News: ‘India can sustain high growth for two decades’

(PTI 26/03/2006) Manila - Indian economy has the potential to sustain high growth rate for the next 10-20 years and can even further accelerate it provided economic reforms continued and infrastructure further improved, Asian Development Bank President Haruhiko Kuroda has said.

"Indian economy has the potential to sustain growth for the next 10-20 years," Kuroda said, adding that India will be able to attain 7-8 per cent growth this fiscal.

"It is possible for the economy to grow by 9-10 per cent but at least two conditions have to be met, economic reforms must be continued and infrastructure must be further improved," Kuroda said.

As Indian economy has been growing fast, infrastructure like roads, seaports, airports, power, communication network has to be really sufficient.

Lots of economic infrastructure needs to be upgraded, expanded and improved and also economic reform must be continued and accelerated, Kuroda said.

Applauding the government for moves on deregulation and privatisation, ADB said further economic reforms will be good for India if the economy has to grow by 9-10 per cent.

The Manila-based multilateral development financial institution also emphasised that growth must be inclusive and equitable for poverty reduction.

"Growth is necessary but not sufficient for poverty reduction. Inclusive growth, further investment in social sector and improved governance are the three elements absolutely necessary for sustained poverty reduction," Kuroda said.

He said ADB is helping developing countries including India to achieve these objectives.