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Rediff.com  » Business » India Inc confident of 10% GDP growth

India Inc confident of 10% GDP growth

By Raj Kumar Ray in Davos (Switzerland)
January 25, 2006 16:56 IST
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India Inc is upbeat about the country's economy touching 10 per cent growth in the next three years, even as a study said that global conglomerates preferred the sub-continent nation to expand their business.

"We are looking at 7.5-8 per cent (economic growth). It can touch 10 per cent in the next three years," Bajaj Auto chairman and managing director Rahul Bajaj told a breakfast meeting at the World Economic Forum, where India is the theme country.

Prime Minister Manmohan Singh too had forecast a similar growth rate for the country.

"India's growth rate is second only to China. Last three years, we have sustained 7 per cent growth and now it is inadequate," he said.

Unfazed by the freezing temperature at Davos, India Inc put up a strong case before global investors to come to India and participate in the growth story.

Their plea was backed by a survey, which said India along with China, Brazil and Russia was preferred by CEOs of international corporates to expand their business as they offer substantial growth opportunities.

The PricewaterhouseCoopers survey, released in Davos on Wednesday, said: "The economies of Brazil, Russia, India and China were once seen primarily as sources of low-cost production."

"However, they now present substantial growth opportunities for both multinational and local companies and at the same time are producing a new crop of serious global competitors," PwC CEO Samuel A DiPiazza said.

A majority (71 per cent) of CEOs say they plan to do business in the four fast growing economies, better known as 'BRIC' economies.

The survey, whose sample size was 1,410 CEOs from across the world, shows that global corporates prefer China and India more than any other nation for expansion.

About 78 per cent of the global CEOs view China as the most significant market followed by India (64 per cent), Russia (48 per cent) and Brazil (46 per cent).

"They (CEOs) also see China and India as greatest competitive threat to other markets," it said.

Though China is ahead of India in terms of cost-cutting and increasing capacity, the PwC chief said: "India ranks highest for accessing a highly skilled talent pool."

Global CEOs, however, cited over-regulation, trade barriers, political instability and terrorism as the major major challenges to global expansion.

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Raj Kumar Ray in Davos (Switzerland)
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