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CEOs bullish on service sector

CEOs bullish on service sector
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First Published: Sun, Sep 07 2008. 10 46 PM IST
Updated: Mon, Sep 08 2008. 09 58 AM IST
Despite an uncertain economic scenario with inflation at a high and a liquidity crunch that dogs India Inc., most companies remain bullish that the services sector will be able to beat the slowdown.
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The sector is expected to grow at over 9.5% during the current year, according to a CII snap poll. 58% of CEOs polled do not expect a decline in service sector growth during the current year. They however remain cautious of a global economic slowdown, deceleration in the economy and a shortage of skilled manpower.
Sounding optimistic, the director general of the country’s apex industry body Chandrajit Banerjee, said, “The CII Snap Poll reveals robust service growth expectation during the current year and supports GDP growth expectation of 8% plus. Both investment and employment is expected to increase in the services sector despite pressure on profitability during the current year.
The investment outlook for the current year is reported to be positive. 97% of CEOs hope to go ahead with their expansion plans while 90% believe competitive firms would continue to expand during the current year as well.
While growth and investment outlook is healthy, the poll finds margins to be under pressure.
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First Published: Sun, Sep 07 2008. 10 46 PM IST