At a well attended luncheon on June 4 in New York, Societe Generale, one of the largest financial services group in Europe, released its report -- 'The India Factor' and a comparative analysis of the opportunities and risks in China and India.

The report detailed the strengths of the Indian economy, including:

a) Four straight years of 8 per cent+ GDP growth -- 9 per cent barrier crossed for FY06/07;

b) Solid macro fundamentals -- high savings rate, diversified economy, FDI and portfolio investments;

c) Purchasing Power Parity reached $3,942 in 2006 (2007 $4,282)

d) Growth across the socio-economic spectrum -- 100-300 million strong middle class. Fastest growing number of high net worth individuals in the world. Over 700,000 Indian consumers with $100,000+ in liquid wealth.

The Report showed how India was becoming globally competitive in many sectors: auto components; chemicals; IT services; manufacturing; pharma, oil refining, etc. It also noted that with its expanding middle class and rising incomes, India was a consumption driven economy experiencing an infrastructural investment boom.

Further, the report found that European corporations were strong in the construction, telecommunications, banking and consumer goods sectors. Interestingly, it showed that 75% of foreign corporations with investments in India were making profits.

The Indian Minister of State for Industry Ashwani Kumar was the keynote speaker on the occasion. In his address, the minister drew attention to the strength of Indian democracy, which afforded political stability to the decision making process. 

He described the egalitarian philosophy which animates the economic reform programme so that all stakeholders feel a sense of participation. He particularly noted that in the last 22 years, the Indian economy has succeeded in pulling up 1 per cent of the population, previously below the poverty line, every year.

The minister also described the factors which led to 9.2 per cent growth of the economy and more than 11 per cent growth in the manufacturing sector last year and the potential for continued high rates of economic growth. He also spoke about the policies intended to address the infrastructure challenge, including the power sector.

The minister will address a group of institutional investors at a breakfast meeting on Tuesday and a group of women CEOs on Wednesday.

Indian Minister of State for Industry Ashwani Kumar speaks on 'The India factor and a comparative analysis of the opportunities and risks in China and India' at Waldorf Astoria in New York on Monday.

Photograph: Mohammed Jaffer-SnapsIndia