New Delhi: Economic growth may rebound from the next fiscal if government expedites its reform process, a survey by industry body CII has said.
Pulled down by poor performance of farm, manufacturing and mining sectors, economic growth slowed to 4.8 percent in the January-March quarter and fell to a decade's low of 5 percent for the entire 2012-13 fiscal.
"...The turnaround in growth may take place only from next fiscal, unless the reforms process are expedited and more aggressive set of measures are put in place to trigger the growth process," it said.
It said that in the prevailing circumstances, the GDP growth for the current fiscal may cross 5.5 percent mark.
RBI intervention by way of cut in repo (short-term lending) and CRR (the portion of funds banks need to keep with the central bank) rates are among the top most policy actions the participants of the survey are expecting from the government.
"Liberalising FDI regulations and stronger intervention by RBI are the most critical policy measures," it said, adding, there is an urgent need to clear all the pending projects to boost domestic investments.
Interestingly, majority of the respondents said that a significant proportion of businesses are looking at capacity expansion in the current year.
This CEOs' survey was carried out amongst 75 national council members of the CII.
"This is encouraging development in the midst of negative sentiments in the economy and all efforts should be made to ensure that the policy environment enables these intents to be translated on the ground," it said.
First Published: Sunday, July 14, 2013, 11:45