Financial services to be next engine of Indian growth

India has said its growth story, steered mainly by IT and telecom so far, will shift gear towards financial services to drive expansion.
"It is our intention to make financial services the next growth engine for India," Finance Minister P Chidambaram said at ICICI Securities Investor Conference here Thursday.
As the economy becomes more open and trade intensity increases big financial flows would be intermediated in India, he said.
Pointing out that India is a purchaser of international financial services, he said there is an opportunity for India to become a provider to these services as well.
He cited a recent report to state that these services were valued at USD 13 billion a year and would rise to USD 48 billion by 2015.
A government constituted committee had earlier this year submitted its recommendations on making Mumbai an International Financial Centre.
"It is, therefore, our intention to make Mumbai an International Financial Centre," he said, adding the report is in the public domain and the process of building a consensus on the key recommendations is on.
Pointing out that outlook for the Indian economy is positive, Chidambaram said the factors that are driving the current growth are domestic consumption, rise in investment, increase in employment and increase in productivity of both labour and capital.