Today in New Delhi, India
Nov 14, 2018-Wednesday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Healthcare, IT to grow most in 2007

Analysts expect the Indian economy to grow by 7.6 per cent in 2005/06.

india Updated: Jan 26, 2006 14:51 IST
Reuters
Reuters
None

India's healthcare and technology sectors are expected to post the highest year-on-year growth in earnings in the fiscal year to March 31, 2007 as the economy's services industry expands, according to Reuters Estimates.

India's top 100 listed companies are forecast to post slower earnings growth of nearly 14 per cent in the year to March 2007, compared with a 26 per cent rise in the year to March 2006, Reuters Estimates data showed.

The healthcare sector is forecast to post a 42 per cent rise in earnings in the year to March 2007, while technology is expected to grow by about 32 per cent on a continued outsourcing boom in Asia's third-largest economy.

Other major sectors -- including energy, industrial, financial services, consumer goods and telecommunications -- are forecast to post earnings growth of between 3 and 22 per cent. Only utilities will decline by 6 per cent, Reuters Estimates data showed.

That compares with a 115 per cent rise in year-on-year earnings for the basic materials sector -- reflecting the strong demand for metals -- and a 42 per cent rise for the industrial sector in the year to March 2006.

India's central bank this week revised its estimates for economic growth for the year to March 2006 to 7.5-8.0 per cent from 7.0-7.5 per cent.

Analysts polled by Reuters expect the Indian economy to grow by 7.6 per cent in 2005/06, or at a faster pace than previously thought, on robust growth in services and industry.

First Published: Jan 26, 2006 14:51 IST