Monday, June 30, 2008

Inadequate infrastructure seen to affect India's economic growth.

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Inadequate infrastructure seen to affect India's economic growth. According to the Economic Times , the Prime Minister's Economic Advisory Council Chairman C Rangarajan stated recently that the sluggish development of India's infrastructure might make it difficult to maintain a GDP growth rate of between 8% and 9%. During April, the core sector grew by 3.6% compared to 5.9% a year earlier. Prime Minister Manmohan Singh had said earlier that an investment of USD 450bn in infrastructure was required in order to sustain an annual GDP growth rate of 9%. Rangarajan said that while India's economic reforms had resulted in strong investments in the core sector, infrastructure development was suffering owing to time and cost overruns, poor execution and bureaucratic hurdles.

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Inadequate infrastructure seen to affect India's economic growth.

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