Govt solicits US investment in infra for 9-10% growth rate

Govt solicits US investment in infra for 9-10% growth rate

New Delhi: Prime Minister Manmohan Singh on Monday solicited US investments in infrastructure to realise a sustained growth of 9 - 10% over the next three decades.

“Our (India’s) objective is to sustain a growth rate of 9-10% per annum in the next three decades. And in that process the help of the US is of enormous significance," he said while addressing a joint press conference with visiting US President Barack Obama.

The American companies, Singh said, are welcome to participate in the development of infrastructure sector. The investment requirement in the sector in the next five years has been estimated at one trillion dollars.

“We need American assistance by way of capital exports... India needs a investment of more than a trillion dollars in the next five years in its infrastructure development...We welcome American investment in our economy," Singh said.

India is likely to double the target for investment in infrastructure sector to $1 trillion during the Twelfth Five Year Plan (2012-17).

The country’s economic growth rate slipped to 6.7% in 2008-09 from over 9% because of the global financial meltdown.

The growth rate, however, picked up to 7.4% in 2009-10 and is expected to record 8.5 % in the current fiscal.

The Prime Minister further said that economic growth was necessary to deal with the problem of poverty.

“Foremost concerns of the Indian polity is to grapple with the problem of poverty which still afflicts millions of our citizen...for that we need a string resurgent robust rate of economic growth...and it is a growth rate which is within our reach," Singh added.