Thursday, February 28, 2008

India Must Ease Foreign Investor Rules to Spur Growth, says Economic Survey

India must ease foreign investment rules in retail, sell state-run companies and improve the nation's roads and power supply to accelerate growth, a finance ministry report recommended before tomorrow's budget statement.
``An appreciation of the rupee, a slowdown in industry and infrastructure constraints remained of concern,'' the annual Economic Survey for 2007-08 prepared by officials advising Finance Minister Palaniappan Chidambaram said. ``Raising growth to double digits will therefore require additional reforms.''
Prime Minister Manmohan Singh has faced resistance from his communist allies to allow greater overseas investment in retail and insurance and sell state assets. India's economic growth may slow this year for the first time since 2005 because of weaker local demand and exports after the central bank raised interest rates to control inflation and the currency gained.

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