A potential water shortage and the spread of HIV infections pose some of the biggest risks to India's economic future, the country's finance minister said Sunday as business executives from around the world discussed the opportunities and challenges facing its booming economy.

Volatile global oil prices also threaten to unsettle India's economy, which has grown 8 percent annually over the past three years, driven by an unprecedented boom in consumerism and a surge in new investments, Finance Minister P. Chidambaram said.

"Water poses the greatest challenge ... we are at risk here," Chidambaram told 700 odd delegates to the India Economic Summit organized by the Geneva-based World Economic Forum.

The three-day annual summit, which ends Tuesday, comes at a time when the Indian economy is showing signs that its growth could accelerate further in the coming years. But the focus at this year's meeting was on the risks India faces going forward.

India has 18 percent of the world's population but only 4 percent of the water resources. A fifth of the country suffers from acute water shortages, and Chidambaram said many Indian states are often found squabbling with each other water.

Only 60 percent of the country's 1 billion people have access to safe drinking water and according to World Bank estimates a fifth of communicable diseases in the country are caused by contaminated water.

Social and political tensions over access to water may cause short- and long-term damage to the business and investment climate in India, the World Economic Forum said in a paper titled "India at Risk."

The paper listed five other major risks: spread of HIV and tuberculosis; volatile oil prices; population growth; rising protectionism and climate change.

Any escalation of the disease will likely "hamper economic development by reducing work-forces, diminishing productivity and cutting household incomes," the World Economic Forum said in its paper.

India has the world's highest number of HIV-infected people, totaling at least 5.1 million according to government estimates. Some independent agencies say the number of Indians infected with the deadly virus that causes AIDS is actually much higher than reported by the government.

"I think we are ducking the issue," Chidambaram said.

His comments followed the United Nations' AIDS epidemic update report last week which cites growing HIV outbreaks among men who have sex with men in India and criticizes the country for failing to adequately address the problem.