Even as growth slowed down and investments dried up in the last financial year, many CEOs in a survey conducted by the Confederation of Indian Industry (CII) said they would increase investments in the domestic market in the current financial year.
The survey revealed that 44% of the respondents affirmed an increase in their domestic investment during the current financial year, while 37% of the respondents did not see a decline. Not only this, the CEOs also made similar projections on foreign investments. While 50% did not predict any change in their foreign investment, 37% saw it increasing during the current financial year.
“We need to see some coordinated action from the various ministries in the Union government, state governments and the Reserve Bank of India (RBI),” said Chandrajit Banerjee, director-general.
A turnaround in growth may however take place only from 2014-15, unless the reforms process is expedited and more aggressive set of measures are put in place, the study said. Under prevailing circumstances, 80% of the respondents did not see the gross domestic product growth for the current year crossing the 5.5% mark.
Fifty per cent of the respondents revealed that fast-tracking the reforms process as the first policy priority to clip the current account deficit and 20% ranked liberalising FDI regulations as an economy-boosting measure.