New Delhi: After an impressive 7.6 percent GDP growth in 2015-16, industry Wednesday said the economy should expand at even a faster pace in the current fiscal on various reform measures and on expectations for a good monsoon.
Industry body Ficci said this is a commendable performance in the current global economic scenario and comes on the back of comprehensive reform measures undertaken by the government.
Economy grew at 7.9 percent in the fourth quarter of 2015-16 taking the overall GDP growth to a five-year high of 7.6 percent in the fiscal, mainly on account of good performance of manufacturing sector.
"As for the outlook for the current year, our latest Economic Outlook Survey projects a growth of 7.7 percent for 2016-17. With government giving strong impetus to the rural sector in Budget and expectations of a normal monsoon, both demand and investments are expected to further strengthen," Ficci President Harshavardhan Neotia said.
Another industry body CII said that the hight growth in the fourth quarter of 2015-16 supports its prognosis that the economy would "achieve close to 8 percent" growth in 2016-17.
It said the impressive GDP print in the closing quarter of the last fiscal points to a revival of growth impulses which, going forward, would gather further momentum.
"The numbers show that consumption demand has been the main driver of growth in 2015-16 with investment continuing to perform below potential as compared to last year," it added.
CII expects a rebound in investment, going forward, as the government continues to rev up public expenditure which in the process crowds in private investment to rekindle a new demand cycle in the economy.
Assocham said that it seems that economic activity is finally getting revived as indicated by the expected development in the economy as compared to the previous year.
"Although GDP figures portray an overtly robust picture of Indian economy, however some of the other macro indicators such as bank credit growth, rural demand and factory output do not support such a depiction," it said.
"On the whole, these estimates put forward certain positive indications of growth revival, however, the policy makers need to continue with the proactive stance to support these developments," it added.
There is also a need to create an investment and industry friendly environment that is largely focused on growth, job creation and poverty alleviation," it said.
Consultancy major Deloitte said the latest GDP numbers clearly show that growth levels are stabilizing on the 7 plus handle and are a positive for the economy.
"Overall growth levels should move up in the coming quarters, though likely to remain sub 8 percent, on the back of a pick-up in consumption expenditure. Expect next fiscal's growth to be around the 7.6 percent mark," it said.