Upbeat over India's economy, International Monetary Fund said on Wednesday that the country had the potential to grow at 10 per cent annually for several years, higher than the Tenth Plan target of 8.0 per cent.

"Given the right looks of policies, a growth of something like 10 per cent is surely feasible for a number of years," IMF first deputy managing director Anne Krueger said in New Delhi at 'Bancon', the bankers' conference.

"India has the potential to do better... Sustaining high rate of growth is key to poverty alleviation, Krueger, who has authored a book comparing the economic potentials of India and China, said.

India was already reaping the benefits of opening up its economy during the early 1990s and more would follow once it got more integrated with the world economy, she said.

The financial sector was crucial for any economy to sustain growth, she added.