India's GDP to grow by 7.5-8.5 % in 2010-11: CII survey

By PTI May 02 2010 , New Delhi

India Inc expects the economy to grow by 7.5 to 8.5 per cent 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 per cent range," said the CII Business Outlook Survey based on response from 458 companies.

The economy, according to RBI, is estimated to grow by 8 per cent in the current fiscal, up from 7.2 per cent in 2008-09. However, the government and Planning Commission expect 8.5 per cent 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 per cent of the respondents revealed confidence that exports will expand during the first half of 2010-11," it said.

Over 70 per cent of those surveyed plans to increase investments in the next six months.

The survey also said that about 90 per cent of the respondents expect inflation to be above five per cent 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 per cent in the 2010-11 fiscal.

Regarding employment, about 70 per cent of the respondents expect it to increase during the next six months.

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