GDP growth may be below 6% next fiscal: CII survey

GDP growth may be below 6% next fiscal: CII survey New Delhi: The country's economic growth is expected to be less than 6 percent in the next fiscal due to slowdown in western markets like US and Europe, a survey has said.

"Majority of respondents surveyed said they expect the country's Gross Domestic Growth in the range of 5-6 percent in the next year," according to a survey jointly conducted by Confederation of Indian Industry and McKinsey & Co.

As many as over 50 percent respondents said that the Euro crisis, followed by slowdown in the US and increasing oil prices are expected to have the biggest impact on the Indian economy, it said.

The growth rate during the first quarter of the current fiscal was 5.5 percent.

In the Budget for 2012-13, the then finance minister Pranab Mukherjee had projected the economy to grow by 7.6 (+/- 0.25) percent.

Recently, the Reserve Bank, in its half yearly review of the monetary policy had sharply lowered this fiscal's economic growth projection to 5.8 percent, from 6.5 percent estimated earlier. This was done in the view of global and domestic factors like poor investments and subdued demand.

CII said that around 32 CFOs from leading Indian companies across sectors including manufacturing, information technology, services, consultancy and financial services participated in the survey.

"Most of the respondents said slowdown in growth is one of the biggest challenges faced by corporate India," the survey said adding, corruption is also affecting their businesses.

Besides, the survey said, the Indian economy's outlook remains 'cautiously optimistic' and key enablers to fuel the economic growth include increased FDI, reduced fiscal deficit and enabling corporate growth, it said.

Further, it said, majority of surveyed people said that General Anti-Avoidance Rules (GAAR) is a step in the wrong direction.

Also, over 80 percent CFOs said they expect their company's top line growth to be same this year compared to the last year, it said.

PTI