India, Asiaâ€™s fourth largest economy will have to increase its investments on infrastructure, to achieve an economic growth of 10%, according to the Indiaâ€™s Prime Minister, Dr. Manmohan Singh. India has been in a steady growth track for the past three years with its economy growing at 8% a year. The $775 billion Indian economy grew by 8.9% in the quarter ended June 30, fueled by the growth in service sector.
Infrastructure is an area in which India needs to improve drastically or it may continue loose a few percentage of its GDP. Huge investments are required in this sector for sustaining the countryâ€™s economic growth at its current pace. Dr. Singh also said that increasing the capital base of insurance companies and broadening a poor performing debt market are required for strengthening the economy.
Dr. Singh feels that debt markets in India have been an underperformer and have failed to deliver on expectations. Dr. Singh added that more efforts are required to understand the debt market in the country and to initiate actions to revive it.