Summers says sees future at Indian software firm

But he has also noted that much of the rest of India8217;s economy remains shielded by high tariffs and bogged down by steep tax rates. He also called for more stringent efforts to reign in the ballooning government deficit, which he said was crowding out much-needed private investment.

Summers said India could achieve growth rates of as high as 10 per cent in the next few years if it managed to step up the pace of reforms and opened up its sheltered economy to the rest of the world.

Infosys, like other information technology firms in what is seen as India8217;s hottest economic region, has flourished by taking advantage of India8217;s cheap labour force to offer software services to firms around the world. While much of the country8217;s more conventional industry remains hampered by outdated infrastructure and an often bloated bureaucracy, the software sector has managed to bypass many of those obstacles.

quot;This industry works because we8217;re not dependent on the local infrastructure,quot; said Mohandas Pai, the company8217;s chief financial officer.

Infosys operates its own power plant 8211; a necessity in a country where power outages are part of daily life 8211; and communicates with the rest of the world via satellite rather than through India8217;s overburdened phone system.

Summers was due to depart India later on Wednesday for a one-day visit to Indonesia. Later in the week, he was expected in Tokyo, where he will attend a meeting of finance ministers and central bankers from the world8217;s top industrial nations on Saturday.