India needs to invest $60 to $100 billion a year in
infrastructure to achieve above 9 per cent growth, says
the Asian Development Bank. Rajat Nag, the next managing
director of the Manila-based bank says that a pan-Asian
free trade agreement will raise the region''s GDP by
3 per cent reports CNBC-TV18.
is an Indian born Canadian who will take over as the
managing director of Asian Development Bank mid-next
month after a 20-year stint there. Quoting an ADB study,
he says that India can achieve 8 per cent plus growth
if "infrastructure is provided for. India needs
$100 billion a year, right institutions and policy."
Economist magazine says even though China is
growing faster, It is India''s growth that looks fragile
because of higher inflation, factories operating at
close to optimal capacity and many other reasons where
India appears stretched. But Rajat Nag sees fragility
coming from another direction.
ASEAN FTA is likely to happen next month during a summit
meeting in the Philippines, which the prime minister
will attend. India is not prepared to make big tariff
cuts on 500 -win, some may win more than others but
you should focus on what you win rather than what others
win," says Rajat.
FTA would add 3 per cent to the region''s GDP. India
can gain a slice if it joins in but it also needs to
make sure that the benefits are spread out and again
calls for better infrastructure.