The Prime Minister of Singapore, Lee Hsien Loong has said on Thursday that he believes that the Indian economy can grow between 8 and 9 per cent in the coming 5 to 10 years if the authorities in the country push ahead with the reforms by taking opposition parties on board.

“India would be able to grow not just at seven percent, but 8-9 percent for another 5-10 years easily, because the potential is there, human capabilities are there,” Lee said.

He also praised the efforts in India since economic liberalisation in 1991 and said recommended that India needs to capitalize on its large base of human capital and build on the success in the information technology sector.

Without naming the controversial proposed General Anti-Avoidance Tax Rules (GAAR), he said that the country should improve the climate for more foreign investment. Foreign investors have expressed serious concerns over the worsening investment climate in the country due to the plans to implement the GAAR.

Lee said that the global firms look at the changing regulatory environment and make an assessment if they want to invest in the country. He said that the finance ministry should analyse the implications of change and added that India is a very diverse country and thus it must make everybody feel that.