Indian industry bullish about growth in 2004-05

Monday, 31 May 2004, 19:30 IST
Printer Print Email Email
NEW DELHI: Indian industry is bullish about economic growth prospects in the current financial year because of an expected surge in exports and fresh investments by the corporate sector. According to a survey released Sunday, conducted by the Confederation of Indian Industry (CII), 38 percent of respondents feel the gross domestic product (GDP) growth would be higher than seven percent. While 28 percent of the survey respondents said growth would be between 6.5-7 percent, 20 percent pegged the GDP at 6-6.5 percent in the financial year ending March 31, 2004. The remaining 14 percent felt the economy would grow by less than six percent in the current year. The Indian economy grew by a better than expected 10.4 percent in the October-December period of the fiscal year ended March 31, 2004, outstripping China's, and putting the country into the league of fastest growing economies globally. The GDP is expected to have expanded by a robust eight percent in the full fiscal 2003-04 on the back of a sharp pick-up in agricultural output helped by good monsoon rains. A majority of respondents in the CII survey expected the GDP would remain above the six percent mark in the fiscal year 2005-06 as well. "Thus we foresee three consecutive years of high growth," said the report. The study revealed a majority of Indian businesses, representing a wide spectrum of industrial houses, are looking at fresh capital investments in existing business units. Nearly 86 percent of respondents felt the quantum of new orders would increase over the next six months. According to the survey, a large number of Indian industrial houses are expecting demand to increase in the next six months. "The majority 77 percent of exporters expect an increase in terms of volume, while 14 percent expect no change," it said, noting nine percent predicted a decline in exports. Exports during 2003-04 are valued at $61.85 billion, which is 17.26 percent higher than the level of $52.74 billion logged during 2002-03. The survey said most respondents were of the opinion that the improvement in the overall economy had been higher relative to their activity sector and their own company. The scenario on the employment front, however, continues to remain bleak over the next six months with 49 percent of respondents saying employment levels would remain constant. While 40 percent stated they would increase the level of employment in their companies, the remaining 11 percent felt there would be a decline in their workforce.
Source: IANS
siliconindia