New Delhi: A recent OECD survey has unveiled that the objective to arrive at 10% GDP growth by next four years (2011) is well within India’s reach, if it keeps following an aggressive reformation plan, comprising privatisation, opening up of financial and retail sections and labour reforms.

In its initial investigation on the Indian economic system, the Paris-based Organisation for Economic Co-operation and Development (OECD) discovered red tape, overstretched substructure, prohibition on FDI in certain sectors and the state governments’ poor reaction to reforms as major impediments, which could delay overall development.

While releasing the survey with finance secretary D Subbarao, OECD secretary-general Angel Gurria said, “Improvement in business environment, boosting infrastructure, discipline in public finance and labour market reforms are some of the key areas where tighter reforms are needed.”

In the last four years, Indian economic system has grown-up at an average of 8.6 per cent.

According to RBI estimations, the financial system is likely to develop by 8.5% in the existing fiscal (2007-08), below than 9.4% in the last financial. OECD also anticipates the economic system to grow up by a denser 8% in the coming year (2008) because of the effect of high rates of interest.

Observing that market-based reforms since the 1980s had aided India lessen poverty, the survey stated, “The impressive response of the Indian economy to past reforms should give policymakers confidence that further liberalisation will deliver additional growth dividends.”

India is the world’s third biggest economy, after the US and China in terms of purchasing power equality.

The analysis has stressed the requirement to resume the country’s privatisation programme that has been in limbo owing to conflict from the Left parties.