India Inc differs with 8.1% growth forecast

In a CII snap poll, 89% of the top executives have predicted that the GDP will grow by at least 7.7% in 2005-06, which is lower than Govt's estimate.

india Updated: Feb 08, 2006 18:54 IST

India Inc does not agree with the Central Statistical Organisation's economic growth projection of 8.1 per cent this fiscal, and has instead asked government to cut deficits as per FRBM Act to sustain high growth.

In a snap poll carried out by Confederation of Indian Industries, 89 per cent of the top executives have predicted that the GDP will grow by at least 7.7 per cent in 2005-06, which is lower than the government's estimate.

Seventy per cent of CEOs said Fiscal Responsibility and Budgetary Management was a necessary criteria for sustainable high growth, CII said in a release.

With reference to Fringe Benefit Tax, 53 per cent CEOs said they felt it would be eliminated on account of administrative costs of collections involved. However, 47 per cent of the respondents said it would be retained.

Regarding the surcharge on Income Tax that was raised to 10 per cent, more than two-thirds of the CEOs said they felt that the surcharge should be kept unchanged while 22 per cent wanted it to be removed.

More than three-fourths of the respondents wanted public spending in infrastructure to be more than 3 per cent of the GDP.

Around 83 per cent of CEOs sought a roadmap for an integrated Goods and Services Tax to be unveiled in the forthcoming Budget.

First Published: Feb 08, 2006 18:38 IST