Sunday, March 26 2006 10:57 Hrs (IST) - World Time -

Manila: Asian Development Bank wants India's economic infrastructure to be upgraded, expanded and improved and the economic reforms accelerated to achieve faster and higher economic growth.

ADB feels India can benefit from a common Asian Market as economic integration is going to accelerate growth and reduce income disparity within country.

As Indian economy has been growing fast, infrastructure like roads, seaports, airports, power, communication network has to be really sufficient.

However, it would require substantial effort to reduce trade barriers and harmonise custom duties, according to ADB.

"We have to have long term objectives, ambitious ideas. But we have to be realistic and we have to improve step by step, we have to endeavour for a common market," ADB president Haruhiko Kuroda told sources.

Applauding the government for moves on deregulation and privatisation, Kuroda said further economic reforms will be good for India if the economy has to grow by 9-10 per cent.

Indian economy has the potential to sustain high growth rate for the next 10-20 years and can even further accelerate it provided economic reforms continued and infrastructure further improved, he said.

Kuroda said India will be able to achieve the targeted 8 per cent economic growth this fiscal.

Emphasising that growth must result in poverty reduction, he said "inclusive growth, further investment in social sector and improved governance are the three elements absolutely necessary for sustained poverty reduction."