Sachs said the strategy should involve formulating an export-led growth strategy in the field of information technology, electronics and other traditional sectors, along with the development of infrastructure.

Information technology should be used to help in cost controls and should play an important part in these two exercises, he said.

Though India ranked number one out of 53 countries in engineering and IT skills in an international study conducted recently, it ranked fifty-third - dead last - in infrastructure. But this was no reason to lose hope as private sector from within the country and outside had skills that could be roped in to improve the situation, he pointedout.

The other area where India could improve was in controlling the fiscal deficit, where little headway had been made in the last eight years of liberalisation. At the state level too, problems with the electricity boards had to be sorted out.

Speaking of the advantages India had, he highlighted the prudence with which the country had avoided the Asian financial crisis by not going for `wild amounts' of short term debt which exceeded forex reserves with the central bank. ``Slowing of exports is unavoidable, but India is very strong'', he said. He also praised the realistic management of the exchange rate, which also ensured that exporters were not punished.

The other advantages were its sound legal system, which, unlike China, allowed for more transparency. ``All political parties have committed themselves to reforms, so political uncertainty should pose no problems on the investment front, he said.

Earlier, the Chairman of the Indo-US joint business council Dean R O' Hare said that an agenda wasbeing prepared on a new global network on services sector where India could be a major constructive player on account of its huge human and intellectual capital. The United States accounted for 80 per cent of its employment on account of the services sector, he said.