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The IDF meet focused on how to ensure that anti-poverty programmes reach the people they are intended for. Says Ahluwalia: Some Scandinavian donors wanted to link assistance with inputs on poverty.

Ahluwalia told the annual meet that India would need a whopping $400 billion over the next 10 years to build up the infrastructure sector. The bulk of the investment will have to be made by the public sector, he said.

The finance secretary also predicted that the Indian economy would move back into the fast lane in the second half of this year. He said his optimistic forecast was based on indicators like the rise in non-petroleum imports and a pick-up in credit growth. Taken together, the two factors indicate that economic growth will speed up in the coming months.

We believe the feel good index is up again, the animal spirits of the Indian and international investor vis-a-vis India have revived and a growth recovery is imminent, Ahluwalia said, striking a bullish note to international donors.

The finance secretary also said inflation is gradually being contained.