The Hindu Business Line : `India to become developed nation soon'

The Indian economy is currently on the verge of an accelerated growth trajectory and the country could leapfrog into the orbit of developed nations much before expected, the President of Asian Development Bank (ADB), Mr Haruhiko Kuroda, has predicted.

Addressing the media after the conclusion of the ADB board of governors four-day annual meeting here on Saturday, he said, "In the past, the Indian economy recorded 6-7 per cent growth. Now, in the past three years, the Indian economy has achieved nearly 8 per cent growth per annum. And, I am sure that further acceleration of Indian economy is possible, particularly if the infrastructure development and economic reforms were continued."

According to him, "If the Indian economy grows at 7 per cent, the real GDP would double in 10 years. But if the economy grows at 10 per cent per annum, the real GDP would double in seven years itself."

In a bid to support the evolving economies of Asian region in the development process, the ADB has been proactive in developing the Asian bond market, he said. Towards this, it has been taking up several initiatives that include technical and research assistance to member countries on the bond market development.

At present, the ADB is extending the support to Asian+3 countries in developing a bond market in the sub-region. According to him, such measures on bond market development were important to improve the infrastructure in the region.

Responding to a query, Mr Kuroda made it clear that the 1997-type currency crisis was extremely unlikely now in the region. The regional economies were quite strong with good regulatory mechanisms and stable macro economic environment.

However, he said, it was prudent and appropriate to have necessary safety net and framework in the system to address any external shocks or internal eventualities in the remote future.

On the integration of financial markets in the Asian region, he said, "We are intending to discuss and finalise our vision on the regional cooperation strategy in the coming months."

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`India to become developed nation soon'