NEW DELHI, Dec. 16 (Xinhua) -- Lee Kuan Yew, Minister Mentor of the Singapore, has suggested a four-pronged strategy for India to grow beyond the current 8 to 9 percent rate of economic growth, according to local media on Wednesday.

    "India needs to first of all, cut down on red tapeism; second, provide greater incentives for the private sector; third, address the challenge of infrastructure shortage; and finally, liberalize foreign direct investment norms in the country," Lee said in an interview here with local media.

    He said greater liberalization in Foreign Direct Investment norms would allow India to shift its people out of agriculture into the industrial sector, which is essential for poverty reduction.

    On infrastructure, he said, greater connectedness among Indian cities would be essential for economic development of the country.

    Lee said while the economic cooperation between India and China may increase over the next few years, there was a little possibility of India to overtake China in its economic size.

    Southeast Asian countries have been able to grow at a faster pace than South Asian countries because of cultural drive and education, added Lee.

    He foresaw no change in the global dominance of the U.S. dollar as an international reserve currency over the next 10 years.

    He, however, added that central banks across the globe may diversify their foreign exchange reserves into other international currencies such as euro and yen.

    The U.S. economy is driven by consumption, he said, adding that reckless consumption in the U.S. would continue to grow, despite the current economic crisis.