India Inc sees economic recovery on right track

New Delhi: India Inc Monday said the country's economic recovery seems to be on right course with GDP projected to grow at a 5-year high of 7.6 percent in 2015-16 and hoped the growth will further improve in coming days.

It said the GDP estimates for the year 2015-16 indicate that the economy is firmly holding on to the recovery course.

"Reform measures taken over the past 18 months have put the economy on the growth trajectory. The improvement expected in the agriculture and manufacturing sectors in the current fiscal is encouraging...We do hope to see a turnaround in near future," Ficci said in a statement.

Indian economy is expected to record a five-year high growth of 7.6 percent in 2015-16 on improved performance in manufacturing and farm sectors.

According the Central Statistics Office (CSO), the Gross Domestic Product (GDP) or economic growth is estimated at 7.3 percent in October-December quarter of this fiscal.

Industry chamber PHDCCI also said the GDP growth is inspiring despite slow global outlook and there are better growth prospects for the Indian economy in coming times.

Assocham said the government should take proactive policy measures in the budget specifically focused on agriculture, infrastructure sector, steel, banking and financial sectors among others to revive the economy.

The GDP estimates indicate some revival in manufacturing, construction, trade hotel, transport, communication and services related to broadcasting and public administration, it said in a statement.

Consultancy firm Deloitte India said the manufacturing along with agriculture are the only two sector sub components that are likely to show higher growth.

"On the expenditure side, investments are likely to grow by 5.3 percent for the full year as compared to 4.9 percent in the previous year, which shows that capex is stable and probably moving up," it said. 

Commenting on the advance estimates for GDP, CII said the significant improvement anticipated in GDP growth indicates that the Indian economy is at the threshold of a cyclical upturn.

"As the government has taken a host of measures to provide a new direction to the economy, economic conditions would improve in the coming quarters and new growth opportunities would emerge once the reform initiatives announced by the government take root," it said.

CII added that it looks forward to a reform-centric budget which would put in place bold measures to remove supply bottlenecks and in turn spark a virtuous cycle of investment and growth.