Confederation of Indian Industry president Anand Mahindra said on Wednesday that the partnership between the government and industry should be strengthened to achieve 8 per cent growth by 2010.

Mahindra said he expected India's GDP to grow 6-6.4 per cent in 2003-04, with industry contributing 6.5 per cent and services putting in 7.5 per cent.

To achieve 8 per cent growth, Mahindra said industry should grow 11 per cent and exports double to $103 billion by 2010. "Foreign investment will rise to $24 billion in 2010 from the current $4 billion if our GDP grows at 8 per cent," Mahindra said.

The CII president said India's GDP would be $809 billion in 2010 if the economy grew at 6.5 per cent and $859 billion if it grew at 8 per cent.

Mahindra said a 8 per cent GDP growth would mean the size of the Indian market would be $584 billion and household savings would increase to $223 billion.

Mahindra said India should get a large chunk of business from Iraq's reconstruction. The industry body would open an office in Baghdad in the next couple of months, he added.

"It would make economic sense for the US companies to source products and services from Indian companies and give sub-contracts to them," Mahindra said. He said 40 Indian companies have tied up with the CII for the purpose.

Mahindra said apart from its earlier agenda of making Indian industry more competitive, the industry body would also work to create Indian multi-national companies. To achieve this, the new Indian MNCs Council will be set up under the chairmanship of Ranbaxy CEO DS Brar soon.