"The centre would play a vital role in sustaining and developing LSE`s long standing partnership with India," said Howard Davies, chairman of LSE.

"It will act as a hub to renew, engage and develop strong links with Indian academic institutions, government and corporate bodies to further knowledge exchange and contribute to the debate on broader policy issues by promoting and supporting an active engagement with India," he said.

The centre would engage in wider international research with partners in Asia and beyond, as well as facilitate research and training, Davies added.

Participating in a panel discussion on `India at 60 in a changing world: next 20 years'', Kamal Nath insisted India had not wasted the first four decades after independence. "It was Pandit Jawaharlal Nehru`s vision to build a strong industrial base and also build institutions and democracy in the country," he insisted.

Nath said that in the next 20 years, India would be benefiting from its demographics.

Y V Reddy said India had successfully contained inflation since independence, considering that it was confined to single digit in the first 43 years. "The prospect in the next 20 years is bright," he added.

"RBI is doubly privileged to be associated with the Indian Observatory, as a partner, since it is in honour of Dr. I.G. Patel, one of my distinguished predecessors, and also because the economic policy departments in RBI hope to benefit immensely from the new research network. Further, deepening the relations with LSE is of special significance for India since London is the most prominent global financial center," Reddy said.

O P Bhatt, chairman, State Bank of India, said the country needed massive investment in improving its infrastructure, health services and public health facilities.

Besides, the country needed labour reforms, land reforms and computerisation of land registry, he said.

Mervyn King, governor of Bank of England said that the Bank of England is keen to have a staff exchange programme with the Reserve Bank of India.

"India has a major role to play at the international level, whether it is at IMF, WTO or the United Nations", he added.