Indian CEOs see GDP growing by 7.6 pc
A combined impact of high inflation, rising input costs and firm interest rates are expected to trim India's economic growth, a survey says.business Updated: Jul 25, 2008 16:39 IST
A combined impact of high inflation, rising input costs and firm interest rates are expected to trim India's economic growth to 7.6 percent in FY09, slower than 9 percent of last year, a survey said on Friday.
The survey on 350 chief executives of Indian firms by Associated Chambers of Commerce and Industry also showed majority of businessmen expect the central bank to further raise its key interest rates if inflation remains high.
About 77 percent of the CEOs do not expect GDP growth to surpass 7.6 per cent rate, as they expect industrial output to grow grow 7.2 percent and services to expand 9 percent in FY09.
Earlier, the chamber had forecast a 7.9 percent growth in economy. The central bank pegged growth at 8-8.5 percent for FY09.
Eighty eight percent of respondents say consumer durables are becoming less affordable due to high interest rates, rising raw material cost, high fuel prices and transportation charges.
The impact of rising prices of fuel, copper and steel coupled with high interest rate and low availability of credit might hit auto sales by the September quarter of FY09, it added.