"The government's current open-door policies offer a more transparent economic environment and are geared towards promoting domestic and private investment," Arthur Andersen partner and head of tax, regulatory and business advisory practice, Jairaj Purandare, said at a function organised to release "India - business opportunities" report prepared jointly by the firm and external affairs ministry.

"The report is an extremely useful tool to market India to those investors who have not yet invested in India," Mr Purandare told The Financial Express. About 15,000 copies have been printed and will be available and Indian high commissions and representative offices in other countries. The report is available free of cost. Arthur Andersen has provided the content for the report.

According to the report, a series of "second generation reforms" have put India firmly among the front ranks of the rapidly growing Asia Pacific region. There has been a marked progress in six basic core industries - electricity, coal, steel, crude oil, refinery and cement during April-December last year compared to the previous year, according to the report. Arthur Andersen has predicted demand for electricity to go up to 570 billion kilowatt hour (kwh) by 2001-02 and 782 billion kwh by 2006-07.

"Over the 10-year period (1997-2007), a total capacity addition of 98,000 mw is envisaged entailing an investment of Rs 5,75,000 crore in generation, transmission and distribution," the report stated stated.

The demand for crude oil is expected to more than double to 164 million tonnes from 72 MT by 2010-11. An investment of $100-150 billion is needed to meet the demand. Arthur Andersen has stated in the report that to raise the tele-density to 15 by 2005 from the current 2.5, an approximate 75 million connections at an investment of Rs 1.6 lakh crore was required which would go up to Rs 3 lakh crore by 2010. Citing the government's ambitious Rs 54,000-crore highway development project, the firm has stated that huge opportunities exist is construction of highways, bridges, railway-overbridge, interchanges and bypasses, highway related activities like motels and real estates.

An investment of Rs 33,600 crore is needed by 2005-06 in the ports sector to raise capacities beyond 440 million tonnes (MT). Another $80 billion is required by 2005 in urban infrastructure.