labels: economy - general
India to become world''s third largest economy: Chidambaram news
18 August 2007

New Delhi: Finance Minister P. Chidambaram says India is well poised to eradicate poverty in 20 years and emerge the world's third largest economy, with its sustained growth of around nine per cent.

Speaking at a valedictory dinner for the 43rd batch of foreign diplomats attending a study course at the Foreign Services Institute, the finance minister said India's investments requirement in infrastructure stood revised to $475 billion at current prices from 2007 to 2012 as against an earlier estimate of $320 billion.

He said based on India's savings and investments growth no other country than India could absorb such large funds for the infrastructure sector.

He said that studies had shown that by growing close to 9 per cent, India would become the third largest economy in 20-25 years. However, he added that infrastructure had emerged as the main hurdle to growth, as it had been responsible for reducing the annual GDP growth by one to two per cent.

Chidambaram also voiced his concern about the decade-long agricultural stagnation between 1998 and 2007. While the area under food grain had stagnated at between 120-125 million hectares, its productivity stood virtually frozen at between 68 and 73 million tonnes for wheat and between 85 and 91 million tonnes in the case of rice.

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India to become world''s third largest economy: Chidambaram