Date:12/10/2007 URL: http://www.thehindu.com/2007/10/12/stories/2007101262152100.htm

Business

India can achieve 10-11 p.c. GDP growth: ADB chief

Special Correspondent

Infrastructure improvement crucial
PPP model can help raise resources

NEW DELHI: With improved infrastructure facilities, India can increase the rate of its GDP (gross domestic product) growth to about 10-11 per cent, Asian Development Bank (ADB) President Haruhiko Kuroda said here on Thursday.

Addressing a delegation of the Confederation of Indian Industry (CII) on the issue of infrastructure finance, Mr. Kuroda pointed out that with the development of infrastructure, India could hope to achieve a higher economic growth of about 10-11 per cent, as seen in the case of China, as compared to the current level of 8-9 per cent.

Dwelling on the problems in financing infrastructure projects, Mr. Kuroda noted that the public-private partnership (PPP) model could help in mobilising long-term resources that are required for upgrading the country’s infrastructure facilities. India’s lead in designing and executing infrastructure projects through the PPP mode could then become a lesson for emerging economies, he said.

Speaking at the meeting, Finance Ministry Joint Secretary Arvind Mayaram said that ADB’s involvement in infrastructure projects would deepen the appraisal capacity of domestic financial institutions.

Feedback Ventures Chairman Vinayak Chatterjee suggested that the ADB should increase its presence in the development of infrastructure projects at the State level and also get involved with such projects that were undertaken by the private sector.

Other members of the CII delegation, including Punjab National Bank Chairman K. C. Chakrabarty and National Housing Bank (NHB) Chairman S. Sridhar noted that the Manila-based bank could play a major role in India’s infrastructure development by providing guarantees to projects in this sector.