India can achieve 9-10% GDP growth: Jim O'Neill, Goldman Sachs

NEW DELHI: Chairman of Goldman Sachs AMC Jim O'Neill said that recent set of reforms announced by the government are in the right direction but their implementation is key to economic growth in coming years.

O'Neill, who coined the term "BRICs" to describe the emerging countries of Brazil, Russia, India and China, said past 12 months have been a reality check for India. However, he said that with fantastic demographics and policy measures to welcome global capital, India can still achieve 9-10% GDP growth.

O'Neill said that India is 15 years behind China in terms of urbanisation and it would be positive for Asia's third largest economy if it links to global capital.

Goldman Sachs chairman said, "Reducing fuel subsidy is a step in the right direction."

O'Neill said that India has simple approach to macro economic policy and emphasised need to take measures for tackling inflation.

Government introduced sweeping reforms two weeks ago, such as hike in diesel prices and cap on number of subsidized LPG cylinder; FDI in retail, aviation and broadcasting; disinvestment in 4 PSUs