Saturday, April 22 2006 11:44 Hrs (IST) - World Time -

Washington: The Indian economy continues to be on an accelerated trend with an upsurge in investments, low inflation rate and ample foreign exchange, Deputy Chairman Montek Singh Ahluwalia has said.

"There is the upsurge in investments, inflation below four per cent and a surfeit of foreign exchange reserves, in the neighbourhood of US$ 150 billion," Ahluwalia said at an United States India Business Council-CII event here sponsored by The Tata Group.

He, however, added that the government was not satisfied with the present growth rate and seen in the context of China, there had been a rise in public expectations. "The bar has been raised," the economist said yesterday.

Ahluwalia maintained that there could be a gradual acceleration to a ten per cent growth rate over the next five years with the average growth being between eight and nine per cent.

"India can get to a ten per cent growth rate but the questions that are to be posed are over what period and the kind of policies that are needed to be put in place to achieve this objective. We are quite clear that this acceleration will not come from simply business as usual," he said.

During the interactive session, Ahluwalia made the point that while there had been 'good' growth of the economy, the feeling in the country was that it had not been 'sufficiently inclusive', like that for people involved in agriculture.