New Delhi: Indians companies expects the economy to grow by 7.5 to 8.5% during the current fiscal fuelled mainly by rising capital investment and expanding exports, a CII survey has said.
“Majority (of respondents) expects economic growth to be in the 7.5-8.5% range,” said the CII Business Outlook Survey based on response from 458 companies.
The economy, according to RBI, is estimated to grow by 8% in the current fiscal, up from 7.2% in 2008-09. However, the government and Planning Commission expect 8.5% GDP growth in 2010-11.
The industry optimism was also expressed in the Business Confidence Index that rose to 67.6 points for April-September 2010-11, compared to 66.1 points during the second half of 2009-10, according to the survey.
“The improvement in the index reflects better prospects for the economy in the coming six months,” CII director General Chandrajit Banerjee said.
It said that India’s exports, which have been badly affected due to fall in demand in developed countries, would expand during April’10-September’11.
“Reflecting upon the prospects for exports, 66% of the respondents revealed confidence that exports will expand during the first half of 2010-11,” it said.
Over 70% of those surveyed plans to increase investments in the next six months.
The survey also said that about 90% of the respondents expect inflation to be above 5% during the current financial year.
“With headline inflation nearing double digits, inflation is arising as one of the top concerns for the business community,” it said.
The RBI has estimated inflation at 5.5% in the 2010-11 fiscal.
Regarding employment, about 70% of the respondents expect it to increase during the next six months.