TIOL-DDT 681 · Monday, 20 August 2007 · story 1 of 6

India will be third largest economy in the world - Chidambaram

"Studies show by growing close to 9 per cent, we will become the third largest economy in 20-25 years; We must produce wealth and then divide it equitably. How can we have a welfare state without wealth?", asked Mr. PC addressing the valedictory dinner of a professional course organised by the Foreign Service Institute (FSI) for professional diplomats from countries including Bhutan, Sri Lanka, Mozambique, South Korea, Turkmenistan, Lesotho and Turkmenistan.

Chidambaram told the diplomats

++ The country's fiscal requirement towards infrastructure stood revised to $475 billion at current prices over the next five years as against an earlier estimate of $320 billion.

++ We are growing and continue to grow at around 9 per cent.

++ Infrastructure was the main constraint to growth and this was pulling the expansion of gross domestic product (GDP) down by as much as one-two per cent.

++ The challenge of infrastructure is huge. The requirement of funds is humungous.