labels: economy - general
Investments worth $1.5-trillion needed to spur 9.5 per cent growth: CII news
08 January 2007

According to a Confederation of Indian Industry study, India needs investment worth $1.5 trillion of to achieve 9.5 per cent average growth in the next five years. The apex trade body says that India should target about 2.5 per cent of GDP as foreign direct investment as against the current 1 per cent.

According to CII emphasis should be placed on FDI because of it brings requisite expertise and technology..

According to R Sheshasayee, managing director, Ashok Leyland, and president, CII "Year 2007 should be the 'year of investments' and the required increase should be handled carefully with skillful planning and monitoring."

The CII study has identified four broad sources to raise revenue - public sector, private sector, households and FDI. The four sources had contributed 29.6 per cent, 27.7 per cent, 39.8 per cent and 2.9 per cent revenue respectively in 2004-05.

CII says infrastructure spending by the end of 11th Five Year Plan should go up to at least 10 per cent of GDP. A total investment of $337.5 billion in infrastructure development alone would be required to achieve an average of 9.5 per cent GDP growth.


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Investments worth $1.5-trillion needed to spur 9.5 per cent growth: CII