India should achieve 8.5 per growth in GDP: PM

Helsinki, Oct 12: Prime Minister Manmohan Singh today declared that India was on way to achieving a record 8.5 per cent growth in GDP during the current year, given a stable macro-economic situation, and asked European firms to participate actively in the ''infrastructure boom'' in his country.

''I am enthused by our industrial production registering a 10 year high of 12.4 per cent in July 2006, compared to July of the previous year,'' Dr Singh said, addressing the closing session of the India-EU Business Summit. Finnish Prime Minister Matti Vanhanen, in his capacity as the Chairman of the European Union (EU), was also present.

Expressing disastisfaction over the present level of bilateral engagement between India and the EU, he asked the European industry leaders to ''show the spirit of adventure and enterprise of your forefathers and set out to explore the opportunities in India once again.'' Dr Singh said the process of growth under way in India was now much more sustainable than ever before.

''More to the point, it is widening and deepening the market for goods and services''.

However, he said the government was fully aware that to sustain the growth momentum, India needed to do much more in the field of infrastructure and improve its all-round availability and quality.

''We have evolved several models for greater association of private developers and investors in building highways, ports, telecommunications and various sources of energy. Many established India and foreign companies find these to be potentially profitable avenues. I invite European firms to participate actively in the infrastructure boom in India,'' he added.

He said India had tried to address several of the concerns raised by the European businesses.

The government had tried to improve physical infrastructure. It had allowed 51 per cent foreign equity in single brand retail outlets. Several foreign chains had availed of this opportunity and others were seriously exploring this avenue to enter the rapidly growing Indian retail market. The wholesele trading and franchisee routes were already available to foreign investors.

Dr Singh said India had taken concrete measures to strengthen the intellectual property regime. ''Last year, we amended the Indian Patents Act to allow for product patents for pharmaceuticals, bio-tech products and pesticides. We have considerably modernised and strengthened our machinery for grant and enforcement of intellectual property rights (IPRs).'' The Prime Minister said India continued to work towards smoothening procedures and reducing paper work involved in starting a business in the country.

The EU, he said, remained by far India's largest trading and investment partner. The EU's engagement could only increase its importance for India. There was an increasing Indian presence in European business and such a development would further strengthen the relationship between India and the EU.

He said India was engaged with the EU to evolve further formal mechanisms to promote trade and investments between the two sides.

The recently received recommendations of the High-Level Trade Group would form the basis of a future agreement on economic cooperation.

He told the European industrialists that India was now into the fourth year of 8.0 per cent growth in its national income. ''This was unprecedented. In the first quarter of the current fiscal year, the rate of growth had hit a new high of 8.9 per cent. The industrial sector, was growing at 8.5 per cent to nine per cent annually,'' he said.

UNI