Monday, January 16 2006 17:11 Hrs (IST) - World Time -

Manila: India, whose economy is tipped to grow by 7 to 7.5 per cent in 2005-06, today (Jan 16, 2006) said the projection was not an outcome of mere wishful thinking, but based on aggressive agenda for economic reforms.

"In the first half of the current year, growth was 8.1 per cent, and all available projections for the current fiscal point to eventual growth rate of between 7-7.5 per cent," Finance Minister P Chidambaram said, addressing the annual Asian Development Bank Board meeting here.

"While some sceptics might be inclined to dismiss these projections as far-fetched, the growing potential of the Indian economy has received recognition from practically all quarters", he said.

The Minister quoted the BRICS (Brazil, Russia, India and China) report as identifying India as the only economy that would be capable of maintaining growth rates above three per cent till 2050. "In order to maintain overall growth rate at its current levels, we have to remain committed to an aggressive agenda for economic reforms. The main objective of current phase of reforms in to secure high growth," he said.

"The Indian economy has the potential to reach much higher levels. Let me assure you that my expectations are not outcomes of wishful thinking," Chidambaram said.

Such a growth was possible through achieving robust performance levels across sectors, including industry and farm sectors, besides collaboration among countries for 'producing welfare-enhancing synergies'.

"The challenge before the countries of Asia today is to create and maintain a regional and international environment that is conducive to high economic growth," he said.