In­dia’s eco­nomic growth may sur­pass china’s in 10 years

The Pak Banker - - Company& -

MUM­BAI: In­dia's econ­omy may ex­pand more than China's in the next 10 years if the world's sec­ond-most pop­u­lous nation lifts curbs on for­eign in­vest­ment in re­tail and boosts spend­ing on roads and bridges, Nouriel Roubini said.

"I'm very op­ti­mistic about In­dia's fu­ture growth" be­cause the econ­omy is driven by do­mes­tic de­mand while China re­lies more on ex­ports, the New York Uni­ver­sity pro­fes­sor and chair­man of Roubini Global Eco­nom­ics who pre­dicted the global fi­nan­cial cri­sis said in New Delhi. "The chal­lenge for In­dia will be to sus­tain 9 per­cent growth and at the same time keep in­fla­tion un­der con­trol."

Roubini joins Mor­gan Stan­ley in pre­dict­ing In­dia will grow faster than China. Prime Min­is­ter Man­mo­han Singh's govern­ment plans to dou­ble spend­ing on roads, ports and power plants to $1 tril­lion in the five years to 2017 to im­prove the qual­ity of In­dia's in­fra­struc­ture, which is ranked be­low Sri Lanka and war-rav­aged Ivory Coast.

The South Asian coun­try's gross do­mes­tic prod­uct climbed 8.9 per­cent for a sec­ond straight quar­ter in July to Septem­ber, the govern­ment said this week.

In­dian laws, aimed at pro­tect­ing small store own­ers, limit over­seas in­vest­ment to sin­gle-brand re­tail or whole­sale op­er­a­tions.

Wal-Mart Stores Inc., the world's largest re­tailer, and ri­vals in­clud­ing Car­refour SA and Tesco Plc are push­ing the govern­ment to al­low for­eign in­vest­ment af­ter the trade min­istry in­vited views from the in­dus­try on re­mov­ing the re­stric­tion. Wal-Mart Chief Ex­ec­u­tive Of­fi­cer Michael Duke said in Oc­to­ber he is "op­ti­mistic" that non-In­dian com­pa­nies will be al­lowed to in­vest in the coun­try. -PB News

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