Indian growth 'relies on reforms'

By Karishma Vaswani
Business correspondent, BBC News, Mumbai

Indian shares hit new high

The Indian economy has seen strong growth in the past decade due largely to economic reforms, a report suggests.

The report from the Organisation for Cooperation and Development (OECD) is its first formal report on India.

With an annual growth rate of about 7.5%, India is one of the fastest growing economies in the world.

But for India to reach its 10% growth target by 2011, it must continue with crucial economic reforms, in areas such as fiscal policy, says the OECD.

In particular, reforming India's archaic labour laws have been highlighted as one way to make the economy more efficient.

Thanks to strong economic growth, the number of Indians that have been lifted out of poverty in the last decade has hit a record.

India has ambitious plans of halving its poverty by 2015 - but the OECD says this target will not be met until more reforms are put in place.