Gulf money may help India return to high growth trajectory

Prime Minister Manmohan Singh on Monday asked rich Gulf nations to invest their surplus funds in India's infrastructure sector, saying that
would help the subcontinent nation soon return to 9 per cent growth levels.

"The present international economic and financial situation has clouded some of the prospects of growth in near term. I am, however, confident that the long term outlook for our economy remains strong and robust," he said addressing the Indian community here.

The statement by the Prime Minister at the fag end of his three-day maiden visit to the energy-rich Gulf region came on a day when US-based Goldman Sachs cut Indian economy's growth projection to 6.7 per cent in 2008-09 from the earlier 7.5 per cent.

Asia's third-largest economy sought help from the Gulf region, particularly gas-rich Qatar where he arrived yesterday, to boost investments - key to economic growth.

The current global financial crisis presents a rare window of opportunity for India and Qatar. The investment needs of a large emerging economy like India and the large financial surpluses of an energy rich economy like that of Qatar can be married together to create a win-win situation, Singh said.

"Our inherent strengths, the large size of our markets, the diversified industrial base we possess, and the strong and dynamic private sector will eventually allow us to return to a 9 per cent growth trajectory," Singh said.

Reserve Bank of India last month said the $1.2 trillion economy may grow at 7.5 per cent this fiscal as opposed to 9 per cent in 2007-08. The rate in 2008-09 would be the weakest since 2005.

Source: EconomicTimes