'India to grow at 10% in the next decade'

The country's economy is at a take-off stage and is poised to grow as much as 10 per cent every year in the next decade, Lehman Brothers Asia, a US-based brokerage said.

The economy, which has averaged 8.6 per cent growth each year since 2003, is increasing consumption and investment spending just as China and South Korea did during the early stages of their economic development, it said in the report titled "India: Everything to Play For" released here.

According to the report, India's equity market will outperform developed and emerging market indices over the next five years, and the Indian rupee will appreciate significantly against the US dollar.

"Today's launch of the firm's Indian economic report reflects the intense interest that global investors have in the world's emerging economies, especially India, and it marks yet another milestone in the expansion of Lehman Brothers in Asia," said Tarun Jotwani, chairman and CEO, Lehman Brothers, India.

"India has learned a great deal from its structural policy reforms of the past decade; and we believe that these lessons will be carried forward and built upon in the coming years. We are confident in the economic and social future of India, and fully intend to play a large and growing part in its continued development."