The Hindu : National : Economy likely to grow over 7 per cent: CII

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Monday, Jan 02, 2006

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Economy likely to grow over 7 per cent: CII

Special Correspondent

NEW DELHI: The Confederation of Indian Industry on Sunday said that the economy is likely to grow over 7 per cent in the fiscal 2005-06.

According to a CII statement based on its business outlook survey, Business confidence index at 65.7 was reported to be higher for the period of September 2005-March 2006 with an increase of 1.5 points compared to the corresponding period in the previous year.

Industry is hopeful that GDP growth for the year 2005-06 will be more than 7 per cent. The response reflected a significant increase in business confidence when compared to GDP growth expectations revealed six months ago.

The Confederation said that the current situation index, which compares the current business situation with the previous six months, has gained 0.9 points. Similarly, the expectations index, reflecting the perceptions of the industry regarding their company, sector and Indian economy for the next six months, is up by 1.7 points over the previous business outlook survey, the confederation said.

The survey said 80 per cent of the respondents planned to increase investments during the second half of 2005-06, while capacity utilisation had increased with 60 per cent respondents expecting full capacity utilisation during the period. Production is also likely to increase as 84 per cent of the respondents expecting increase in new orders, while 78 per cent were upbeat about heightened exports.

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