New Delhi: Indian economy may grow at 7.2% this fiscal on the back of improvement in consumer sentiment, policy reforms and projected growth in agriculture and industrial sector, a Assocham survey said.
In a survey of 300 businessmen, about 42% of the respondents said that policy reforms would cast large impact on the gross domestic product (GDP) growth.
“Indian economy is expected to register a GDP growth rate of 7.2% in 2009-10 on account of improvement in consumer sentiment, rural India and policy reforms,” the chamber said.
Majority of the respondents said that the government would be able to bring about significant reforms this year, and about 91% believed that there are good chances of improvement in consumer sentiments in the following months.
About 40% respondents felt that isolation of the rural India from the impact of recession has a huge impact on the GDP growth rate, it said.
“The agriculture sector is expected to record the growth rate of 3.5% as good monsoons, better crop prices and upward revision of the crop forecast has ensured a healthy growth rate for the agriculture sector,” it said.
The sector, which was reeling under pressure due to high interest rates, reduced demand and global recession is expected to record the growth rate close to 4.6% in the fiscal.
With the improvement in consumer sentiment, increased government spending and anticipated reforms, the services sector is estimated to chart 9.7% growth in 2009-10, Assocham said.
About 75% of the respondents believed that government would use further fiscal incentives to stimulate the economy, it said.
However, the factors which continue to inhibit the economic growth rate from pacing up include poor state of the world economy and money market conditions, it added.