India seeks more foreign investors

The runaway growth of China's economy puts it high up the agenda for the world's major investors and that is a challenge for India.

India has been playing catch up to China, largely because the government in Beijing set out to liberalise its economy two decades ago.

During the economic downturn, as the world's rich countries battled to escape the dark shadow of recession the Chinese spent billions successfully stimulating their economy.The growth of China's economy continued to attract foreign investors, putting India at a disadvantage.

The Indian government expects its economy to grow 7% this year, thanks to measures to stimulate its economy. Speaking at the World Economic Forum 2010, at Davos, Anand Sharma, India's Trade Minister, told the BBC that India's economy was strong.

First broadcast on World Business News