CII has said a minimum of 7% of GDP, which comes to around Rs 2,00,000 crore a year of investment, has to go into Gross Capital Formation in infrastructure for sustainable growth.Members of CII's National Council, which met in Chennai and reviewed the economy, felt that a minimum of 7% of GDP has to go into Gross Capital Formation in infrastructure. This translates into Rs 200,000 crore a year of investment, CII said in a statement.The private sector can do at best 20 to 30% of this investment, therefore, the balance has to come from the government. Currently, it is estimated that the investments are only half of what is needed, it said.The chamber has asked the government to ensure on-the-ground implementation of many infrastructure projects like roads, ports, power, coal projects, and airports.With enhanced investment in infrastructure, the current high rates of growth would be definitely sustained, said the CII release.The members were clearly upbeat on the growth in the current year, in all areas of the economy--manufacturing, services, and agriculture-- despite high oil prices, it said."VAT collections were up, inflation was moderate and non-food credit was rising by more than 20%. The fiscal deficit was coming down, and various agencies were all forecasting GDP growth rates higher than 7% for 2005-06," CII said.
