India's economic growth is expected to be less than 6% in the next fiscal due to slowdown in western markets like US and Europe, a survey has said.
"Majority of respondents surveyed said they expect the country's gross domestic growth in the range of 5-6% next year," said a
survey jointly conducted by industry body Confederation of Indian Industry (CII) and McKinsey & Co.
As many as over 50% respondents said that the euro crisis, followed by slowdown in the US, as well as increasing oil prices, are expected to have the biggest impact on the Indian economy, it said.
The growth rate in the first quarter of this fiscal was 5.5%.
In the budget for 2012-13, then finance minister Pranab Mukherjee had projected the economy to grow by around 7.6%.
Recently, the Reserve Bank of India (RBI), in its half yearly review of the monetary policy, had sharply lowered this fiscal's economic growth projection to 5.8%, from 6.5%, in view of global and domestic factors like poor investments and subdued demand.
CII said that around 32 CFOs from leading Indian companies across sectors including manufacturing, information technology, consultancy and financial services participated in the survey.
The survey added that most respondents felt corruption is also affecting businesses.
Besides, the survey said, the Indian economy's outlook is 'cautiously optimistic' and key enablers to fuel the economic growth include increased FDI, reduced fiscal deficit and enabling corporate growth.
It added that a majority of people surveyed said the General Anti-Avoidance Rules is a step in the wrong direction.
Also, over 80% CFOs said they expect their company's top line growth to be same this year compared to last year, it said.
© Copyright © 2013 HT Media Limited. All Rights Reserved.