New Delhi: Indian economy has a potential to grow by more than 7.5 per cent annually and become the third largest in the world surpassing the developed nations like Italy, France and Germany in the coming decades, Reliance Group Chairman Mukesh Ambani said today (Mar 12, 2004).

"International economic and financial analysts have predicted that India will record the highest growth rates in coming decades. They have put India's GDP (Gross Domestic Product) growth at 7.5 per cent per year. I believe this understates India's potential," he told the India Today conclave in New Delhi.

To attain this ambitious target, Ambani stressed on development of three sectors -- services, energy and knowledge-based industries.

"Attaining a G-5 economic status is only half the story," the RIL chief said while asking Government to resolve the Centre-State disputes on various important issues.

"Several national concerns -- from water resources management to fiscal management -- are victims of Centre-State wrangling. Can we amend our Constitution to address these?" he said, adding there was also a need to simplify tax laws, upgrade infrastructure and carry forward reforms.