India can sustain 8 percent annual economic growth through a four-pronged strategy involving agricultural, industrial, services and infrastructure sectors, Indian Finance Minister P. Chidambaram said in New Delhi Sunday.

Speaking at the 21st India Economic Summit jointly organized by the Confederation of Indian Industry and the World Economic Forum, he urged greater foreign direct investment (FDI) in industry and involvement of the corporate sector in pre- and post-harvest activities to enable the agricultural sector to grow and create rural wealth.

"Asia will remain the leader in steering world economic growth, " he said. The Chinese and Indian economies were estimated to grow 9 percent and 7.1 percent respectively in calendar year 2005, against the 4.3 percent growth of the world economy.

"China is leading the flock. India has joined the flock," he said, adding that "8 percent is no magic figure. India must look at 8 percent and beyond."

Pointing out that India had abundant water resources and adequate precipitation, Chidambaram said a massive infusion of funds was needed "to bring many, many more thousands of hectares under irrigation."

Turning to industry, the minister said it was "not enough" to be an industrial society. "India must become an innovative society and this will be possible only through heavy investment in R and D (research and development)."

Admitting that India was a "difficult place" to attract FDI, he said it was imperative to attract greater foreign investments in industry.

Source: Xinhua