India, along with China, has an opportunity to drive global economic growth.
However, to realise this huge opportunity, infrastructure development is vital, said Saud Siddique, Joint Managing Director, Srei Infrastructure Finance Ltd.
Five years ago, such an economic growth in Asia was unimaginable. However, today, Indian companies have an opportunity to invest not only in India but also abroad, he said in his address at the South India Infrastructure Summit, organised by the Confederation of Indian Industry.
In the last 10-15 years, the infrastructure sector, especially power, telecom and road, has made huge progress with the private sector making a significant contribution. In fact, private investment is expected to increase to nearly 50 per cent from a low of 15 per cent a few years ago.
However, a favourable government policy is required that understands the importance of private sector challenges, he said. “The situation is not ideal and requires lot of reforms. There is a great degree of frustration in the private sector.”
According to M. Narendra, Chairman and Managing Director, Indian Overseas Bank, India needs to have a revival of all of its core sectors, including agriculture, to achieve a growth rate of over 8 per cent. The agriculture sector should grow at 4 per cent, the industrial sector at 8 per cent and services sector at over 10 per cent.
“We should promote savings. But for this, it is important that there is growth in all the vital sectors of the economy,” he said.