'Mideast eyes India growth model'

INDIA ECONOMIC SUMMIT 2006

India's real estate market will strike a balance, but is still at a healthy stage, says Mohamed Alabbar

The Middle East, which has traditionally looked at the growth model of the West, is now looking towards the East, especially at India, a country with a young and vibrant economy, Mohamed A Alabbar, chairman, Emmar Properties, UAE, said on Sunday.

According to Alabbar, who was speaking at the India Economic Summit press conference, though India faces infrastructure bottlenecks that need to be removed, the country's economic growth model is sustainable.

"Different countries have different rates of growth and we cannot expect India to grow at the same rate as other economies," he added.

Responding to a question on increase in real estate prices in India, Alabbar said globally countries go through a cycle of increase in property prices. India is at the beginning of this cycle.

"India will face a shortage of 18 million housing units by 2015. The real estate market in India will find its balance but it still at a healthy stage," he added.

Domestic demand, which is fuelling India's growth, makes India's growth story very unique, Peter Bakker, chief executive officer of TNT Netherlands, said.

TNT would be pushing the Indian government to increase investment in infrastructure projects, in developing a single market and to remove bureaucracy in transporting goods across states.

Emphasizing inclusive growth, Nandan Nilekani, CEO and managing director of Infosys Technologies, said the government has to ensure inclusive growth to sustain the current levels of economic growth. Employment needs to be created in every sector.