The Indian economy has the potential to grow by more than 7.5 per cent annually and become the third largest in the world surpassing the developed nations like Italy, France and Germany in the coming decades, Reliance Group Chairman Mukesh Ambani said on Friday.

"International economic and financial analysts have predicted that India will record the highest growth rates in the coming decades. They have put India's GDP growth at 7.5 per cent per year. I believe this understates India's potential," he told the India Today conclave in New Delhi.

To attain this ambitious target, Ambani stressed on the development of three sectors -- services, energy and knowledge-based industries.

"Attaining a G-5 economic status is only half the story," the RIL chief said while asking the government to resolve the Centre-State disputes on various important issues.

"Several national concerns -- from water resources management to fiscal management -- are victims of Centre-State wrangling. Can we amend our Constitution to address these?" he said, adding there was also a need to simplify tax laws, upgrade infrastructure and carry forward reforms.

Highlighting the need to step up oil and gas exploration, Ambani said: "It will not only address energy needs, but also wipe out large financial deficits government faces today."

Although India was still an energy-deficient state, he said the recent oil and gas finds have surprised everyone in the world. "To transform India into an energy-surplus country is a major challenge," he said.

India also has the ability to built knowledge-age competencies in technology and trade.

"About two-thirds of incremental global GDP growth in the future is estimated to come from technology domains. India has the opportunity to leverage technology as a means to generate economic growth and development," he said.

Although India's share in global trade was only 0.8 per cent, Ambani exuded confidence that India has the opportunity to be a global player in commodities trade.

"Just four commodities can make a $600 billion opportunity happen -- agriculture, bullion, edible oils and metals," he said.

Ambani also wondered that if Middle East can be the energy base for the world, why can't India be the food base for the world. "This will call for a quantum leap in technology deployment and a 10-fold productivity increase," he said.

"Today we produce about $125 billion of agricultural products. We can easily target $2.0 trillion in food output," he said calling for a second green revolution in the country.

Same thing applies for manufacturing, he said, adding, "Today the sector contributes $130 billion in output. To my mind, the opportunity is easily 20 times this number."