NEW Delhi (BBC News) – India needs to boost its spending on roads, ports and railways India is one of the World Bank's largest borrowers receiving some six percent of loans, grants and credits in 2006, the donor agency has said.

South Asia continues to be one of the major recipients of World Bank money accounting for $3.8bn this past year.

Both India and Pakistan figure in the top ten largest borrowers.

The latest figures come as a study warns that India must spend a lot more on building its infrastructure if it is to compete with other Asian economies.

India is one of the world's fastest growing economies and in the past few years has made impressive strides in manufacturing as well as in the area of business services, including outsourcing.

Despite this, the country is still a major recipient of international aid.

Over the past year, it received $1.4bn from the World Bank's two close affiliates - the International Bank for Reconstruction and Development and the International Development Association making it one of its top ten borrowers.

Pakistan's share was a little higher at nearly $1.5bn.

Infrastructure

Much of the money is being spent on building infrastructure as well as improving the quality of education and health, especially in rural areas.

A report that has just been released by a top Indian industry body - the Confederation of Indian Industry (CII) - says that India needs to spend $331bn over the next five years on infrastructure such as roads, ports and power plants if it is to compete with other economic giants such as its Asian rival, China.

"While China spent 10.6% of GDP, India's capital spend on infrastructure was below 4% in 2003," the report says.

"The disparity was even more stark in absolute figure terms, with China spending $150bn on infrastructure against India's $21bn."

The study recognizes that India can no longer depend on the government for money and that the funds will have to be generated from other sources, including private industry and international donors.