GDP expected to grow at 9.2% in 2007-08: CII
Indian economy is expected to show a marginal decline in GDP growth to 9.2 per cent in the current fiscal from 9.4 per cent in 2006-07 with services sector and industry maintaining the momentum, CII has said.
According to the chamber, the agriculture sector would show a moderate three per cent growth, against 2.7 per cent in 2006-07.
Industry and services sector are expected to grow at 9.4 per cent and 11.2 per cent respectively during 2007-08.
"On the whole, CII expects the GDP growth to be 9.2 per cent during 2007-08, with agriculture growing at 3 per cent, industry at 9.4 per cent and services at 11.2 per cent," the chamber said in its 'state of the economy' report.
The Indian economy had registered a 9.4 per cent GDP growth in 2006-07, highest in the last 18 years, due to a stellar performance by manufacturing and services sectors.
In its quarterly analysis of economy for the January-March period, the chamber said in spite of appreciating rupee impacting exports, country's GDP grew at 9.1 per cent primarily led by 19.35 per cent growth in corporate earnings.
It said appreciating rupee had a negative impact on profits of textile and leather sectors during the fourth quarter with profit margin expected to erode further to 10.4 per cent during the next six months.
Service sector companies registered a 45.68 per cent growth in profits compared to 10.32 per cent growth in the corresponding quarter last fiscal. Manufacturing sector, however, reported a slowdown in profits during the quarter to 7.91 per cent from 15.17 per cent in Q4 2005-06.