India's GDP may exceed 6 per cent in current fiscal: CII
India's economic growth is likely to exceed 6 per cent in 2009-10 as demand is picking up across sectors and the economy is getting back on track, industry body has said.business Updated: Nov 15, 2009 11:35 IST
India's economic growth is likely to exceed 6 per cent in 2009-10 as demand is picking up across sectors and the economy is getting back on track, industry body has said.
"Over 70 per cent of CII members said GDP will exceed 6 per cent in 2009-10," the Confederation of Indian Industries said in a release.
According to a report released by the chamber, industry and services have recovered on the back of the government's stimulus package but the performance of agriculture sector is a cause of concern.
"Economic indicators are looking up as industrial production has shown a significant upturn, business confidence has surged, stabilised financial markets and capital inflows have returned," CII Director General Chandrajit Banerjee said.
He added, despite these upside prospects, the performance of agriculture is likely to pose some downside risks to the growth outlook for Indian economy in 2009-10.
The industry grew by 9.1 per cent in September.
CII has surveyed 1,022 firms both in manufacturing and service sectors.
It added, corporate results of firms for the second quarter of the current fiscal showed signs of stabilisation.
It said, on a quarter-on-quarter basis, net sales rose by 9.2 per cent after three successive quarters of decline indicating a recovery. However, net profits have declined by 0.2 per cent due to high raw material and interest costs.