Indian industry should increase investment in research and development to face competition and achieve a minimum eight per cent growth of the economy, R Chidambaram, the principal scientific advisor to Union government, said on Friday.

"Since the country is in initial stages of growth (compared to developed economies), it is possible to attain eight per cent even in the current global environment", he said, addressing Confederation of Indian industries' annual regional meeting in New Delhi.

Besides providing edge to companies, the technology development had direct bearing on creating wealth, national security and improvement in quality of life, he said.

The flow of foreign technology has slowed down and overseas companies are buying out Indian partners, the scientific advisor said adding multinational companies find Indian scientific and engineering talent attractive and are setting R&D base here.

On the development of nuclear technology, Chidambaram said "the growth would be fastest in India and China and help us in raising capacity for power generation".

Currently eight nuclear power projects to add 3,960 mw capacity are under construction and "we will meet the target of generating 20,000 mw power through nuclear route by 2020", Chidambaram said.

Bajaj Auto chairman and managing director Rahul Bajaj said eight per cent growth target for gross domestic product was necessary to remove poverty. Agriculture, however, would not be able to grow at rates in excess of four per cent, he added.

Commenting on the impact of Iraq war on India, Bajaj said the uncertainty caused more problems than the war itself.

"Once the war is through, Indian companies could gain some business from reconstruction work in Iraq as sub-contractor to international firms", he said.

Turning to corporate governance in India, Bajaj said corporates have to follow ethical management practices and bring in transparency in their working.

Securities and Exchange Board of India's CG code was most advanced in the world. However, no law and code could be a substitute for integrity and honest management.

The Naresh Chandra panel's recommendation on independent directors needs review as tenure based definition of such directors would put limits on contribution by effective persons, he said.

The recommendation stipulates that after three terms of three years independent director would cease to be considered as independent.

ICICI One Source chairman Ashok Ganguly said India industry would have to invest in technology to sustain double digit growth. However, there was no evidence of that happening widely.