Washington: Indian economic growth has gained momentum due to an accelerating expansion by the private sector and the International Finance Corporation (IFC) has supported this trend with a record level of investments in the financial year 2004, IFC has said.

The private sector remains at the foundation of this strong performance as entrepreneurs throughout South Asia, including India, strive for international competitiveness and identify opportunities to expand operations within the region and beyond, said IFC, which is the private sector arm of the World Bank.

IFC has supported this trend with a record level of new investments, $ 405 million as well as $ 109 million in loan syndications.

It has also provided technical assistance to help companies improve competitiveness, access longer term funding and reach new markets, the organisation said.

The assistance includes facilitating investments between developing countries and strengthening links between small businesses and larger IFC clients.

The year saw an investment in India's largest producer of writing and printing paper, Ballarpur Industries Ltd, to help raise the efficiency of its local operations and support expansion of its farm fores try programme, with substantial benefits for rural farmers.

IFC has also helped RAK Ceramics, a United Arab Emirates-based company that was already a client in Bangladesh, invest in new capacity for manufacturing ceramic tiles in India.