India has potential to grow 8-9 per cent annually over next 5-10 years: Singapore PM

India has the potential to clock an 8-9 per cent growth over the next 5-10 years by focusing on its intrinsic strengths and taking the opposition on board to push economic reforms, according to Singapore Prime Minister Lee Hsien Loong.

"India would be able to grow not just at 7 per cent, but 8-9 per cent for another 5-10 years easily, because the potential is there, human capabilities are there," Lee said at a symposium.

Hailing the country's progress since economic liberalisation in 1991, he said India needed to capitalise on its large human capital build and on the success of the IT sector.

India would have to improve investment climate to attract flow of foreign investments, Lee said in an oblique reference to the implementation the General Anti-Avoidance Tax Rules (GAAR), which had attracted considerable controversy recently.

Global industry associations and investors have voiced concern over India's business environment in the wake of the announcement of GAAR.

The introduction of retrospective tax as in the case of Vodafone had also added to the uncertainty among overseas investors.