With rise in the domestic savings and investment rate, and with fiscal prudence, a 9-10 per cent growth rate is achievable for India in the 11th five-year plan. Finance minister P. Chidambaram stated this in the opening session of a conference on “Indian Financial Markets” in New York today.

The FM said the economy was growing at over 8 per cent. With the services sector contributing more than 54 per cent and industry contributing 22 per cent and growing in double-digit figures, the India growth story shall continue for years to come.

Highlighting the fundamentals of the economy, the growth of exports and imports over the years and the positive forex reserves, Chidambaram stated India’s gross national income was growing fast enough and was therefore an emerging global player. He said India is the only large country in the world whose working age population would be increasing till 2050, giving it a great advantage over the rest of the world.

The FM stressed the need for changes in the insurance laws to foster increased insurance penetration and said pension reforms were another critical area. He also asserted that the capital markets in India were among the best regulated and encouraged more retail investors to enter. While the cumulative growth of FIIs had risen year on year to $46 billion, the debt markets needed deepening, he said.