Kuala Lumpur: India on Wednesday offered to work
with Malaysia in developing capacity in IT and higher
education, saying these were promising sectors for cooperation
between the two countries.
Delivering the Khazanah Global Lecture here, Singh also
invited Malaysian corporate to participate in the development
of Indian infrastructure, which would need investment of about
USD 1 trillion during the coming 12th Plan period (2012-17).
"The future of the global economy in the 21st century
lies in the knowledge economy. We are working to strengthen
our competitive advantage in this area... Both higher
education and the information technology sectors are promising
areas for India-Malaysia cooperation," he said at the lecture
organised by Khazanah, the investment holding arm of Malaysia.
India has been steadily increasing the expenditure on
science and technology as a proportion of GDP and has been
investing heavily in both basic and higher education.
"For the last 50 years, India had seven Indian Institutes
of Technology and one Indian Institute of Science. In the last
five years, we have established eight more IITs and five
Indian Institutes of Science and Research," Singh noted.
Although India claims a favourable demographic advantage,
the Prime Minister noted that a "young population is an asset
only if it is educated, skilled and finds productive
The average age of an Indian by 2020 would be 29 years as
compared to 37 years in case of China and 48 for Japan.
"If this (demographic advantage) were to happen, our
objective of realising India`s potential to grow at 10 per
cent or more per annum for substantial period of time can
become a reality," he said.
Singh further said that like the East Asian nations,
India too is witnessing high savings and investment rates.
"India now saves and invests well over 30 per cent," he added.
Admitting that infrastructure was a "major constraint",
Singh said, "We are determined to overcome it. In the 11th
Plan that ends in 2011-12, we had targeted investment in
infrastructure of USD 500 billion. We hope to step this up to
one trillion US dollars in the 12th Plan.
"Malaysia has well known strengths in building
infrastructure and we welcome greater Malaysian participation
in this sector," Singh said.
India is in the process of setting up infrastructure
investment funds and would seek international funding.
"There are big plans afoot in India to set up special
investment funds that can be used to finance long-gestation
infrastructure projects. We hope to attract Indian and
international funding into these projects," Singh added.
Having grown by over 9 per cent for three consecutive
years till 2007-08, economic growth rate slipped to 6.7 per
cent during 2008-09, mainly on account of the impact of the
global financial crisis. The growth rate, however, picked up
during 2009-10 to 7.4 per cent.
Regarding the current fiscal, Singh said, "We expect 8.5
per cent growth."
Pointing out that Indian financial sector, including
banking and capital markets, are strong, the Prime Minister
said, "This had helped support a boom in domestic investment.
Domestic investment is complemented by strong Foreign Direct
Investment flows which are welcome."