CII calls for investment

India: The Confederation of Indian Industry (CII) has called on the Government to invest INR 2.2 trillion (US$ 330 billion) in the country's infrastructure over the next five years. It says the money is needed to sustain India's current economic growth rate of +8% per year.

A new report from the CII said India needs to increase its spending on infrastructure projects to 8% of gross domestic product (GDP) from the current 4.6% to sustain economic progress.

According to the CII, India spends much less on infrastructure than other developing countries in Asia and its booming economy could falter because of inadequate ports, road and rail networks, and power supplies.

In the fiscal year to March 2007, India is expected to spend about US$ 47 billion on infrastructure. This needs to increase to about US$ 84 billion a year until March 2012 to sustain economic growth, said the CII.