India's long term growth story intact: Mukherjee to World Bank

WASHINGTON: India's long term growth remains intact, although it has been affected in the short term, Indian Finance Minister Pranab Mukherjee has informed the World Bank.

The country's long term growth story is intact due to demographics, rising middle class, urbanisation, strong savings and investments, Mukherjee told World Bank President Robert Zoellick at a meeting with him during his visit here last week.

Officials said the Indian minister also said that the country was witnessing rising entrepreneurship and continuing reforms under a democratic polity.

Mukherjee was in Washington to attend the annual meeting of International Monetary Fund and World Bank.

While Mukherjee sought Zoellick's view on the global scenario, the latter was interested in the steps being taken by India on governance and fighting corruption in view of the recent civil society protests against that in India.

A senior Indian official, speaking on the condition of anonymity, said Mukherjee told Zoellick that his government is committed to tackling corruption, bringing transparency in procurements and allocating resources through auctions. Besides, it has undertaken other measures such as doing away with discretionary powers of the Ministers.

A new National procurement Law and a new Land Acquisition Bill are under consideration, Mukherjee informed.

The minister is also believed to have said that negotiations of various agreements for the purchase of IBRD Bonds up to USD 4.3 billion by RBI are at an advanced stage and are likely to be finalised in a short time.