'Grab opportunities in growing Indian economy'

Stressing that India provides the best possible environment for investment among developing economies, Union Minister of State for Industry Ashwani Kumar has asked investors to grab the opportunities in the fast expanding infrastructure, manufacturing and consumer goods sectors in the country.

Pointing out that corporations and investors who have invested in India after the country opened up its markets have made consistent profits and expanded their businesses, he said their money is safe as the economic policies are consensus driven.

Releasing a report 'The India Factor'-- by Societe Generale, one of the largest financial service groups in Europe, in New York on Monday, he listed intellectual capital, increasing population in the working age group and rising urchasing power as important parameters in India's high economic growth.

India has proved its capability to provide quality goods and services for export at lowest possible prices among the developing and emerging economies, he said.

Since India began economic reforms in 1991, governments have changed but not the policies. That in itself should give confidence to the investors, Kumar said.

Pointing out that India would continue the reform process with human face, he pointed that it is important to lift those below poverty line as fast as possible and government cannot forego its responsibility in this regard.

He told the industrialists that this goes in their favour as purchasing power of those lifted above the poverty line increases and that in turn drives up the demand for goods and services.

Speaking about infrastructure expansion, he said $500 to $600 billion are needed in this sector, adding he expects around 25

per cent to be contributed by foreign direct investment.

In power sector alone, the country plans to add 90,000 MW over next five years and in this context, he stressed the importance of the Indo-US civilian nuclear deal.

The country plans a mix of power production sources, including renewable, hydro, alternative, bio and nuclear.

Besides, efforts are on to make more efficient use of power by conservation and decreasing transmission losses.

Referring to the manufacturing sector, Kumar said currently it contributed around 16 per cent to the gross domestic product and government wants to increase its contribution progressively to between 30 and 33 per cent.

It is a realistic target, considering the manufacturing sector grew by 11 per cent last year, he said.

It has strong potential for growth, he said while explaining steps the government taking this direction.

Pointing to the rapid growth of information technology sector, he said the government aims at making India a major player in the electronic hardware.

Rejecting the argument that democracy is hindrance to growth as compared with autocratic states, Kumar quoted studies to impress on the financial experts that consensus driven decisions always lead higher growth in the long run.

In any case, he said, India would not have it any other way as it cannot compromise the freedoms of the individual.

Replying to a question, he said India is quite sensitive to the needs of fighting climate change and reducing emissions of the greenhouse gases which trap carbon dioxide.

Though India is ready to assume responsibilities to reduce emission along with other counties, he asserted it would not accept disproportionate responsibilities.