India's economy to reach $1tr mark by 2009

DUBAI — Indian Minister of State for Industry Ashwani Kumar has stressed the "outstanding resilience" of his country's economy, saying the government is thinking of investing $300 billion in major infrastructure projects in the near future to support growth and further development.

By Jose Franco

Published: Thu 9 Aug 2007, 8:51 AM

Last updated: Sat 4 Apr 2015, 9:20 PM

Speaking before the Indian Business and Professional Council (IBPC) on Tuesday night, Kumar said the Indian government also has three new initiatives that include investments in petrochemicals, manufacturing facilities in the country's different regions, and railroads to connect seven states.

He described the Indian economy as "unique" not only because of unparalleled growth but also of its social justice component. He said it is remarkable to see a nine-per cent GDP growth in India, a country of over one billion people that treats individuals fairly and gives them a just share of the benefits of society.

"India is rising — and the outstanding indicators of resilience of the Indian economy are many..." he told members of IBPC Dubai, which was formed in 2003 as the unified body of three organisations - Indian Business Council, Overseas Indians Economic Forum and Business & Professional Club.

Kumar cited that due to its high growth in gross domestic product, India's economy will touch $1 trillion by 2009 while its international trade is now worth $250 billion, and its foreign reserves amount to $210 billion. He also mentioned that the market capitalisation of the Bombay Stock Exchange had increased to $1 trillion.

Already, India's BPO industry including the writing of software for major foreign companies, call centres and back-office operations is being tapped by global players. The sector hit $12.5 billion in 2004. The country's biotech industry, on the other hand, will be worth $5 billion for the next five years and generate one million jobs. "Its IT industry is also doing very well,according to Abbas Ali Mirza, president of IBPC.