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GDP to grow by 6.8% in FY04 backed by 4-5.5% agri growth: CII
New Delhi, Aug 17: Confederation of Indian Industry has pegged the economic growth at 6.5-6.8 per cent this fiscal backed by a rebound in agriculture and continuance of a robust growth in industry and services sector.
New Delhi, Aug 17: Confederation of Indian Industry has pegged the economic growth at 6.5-6.8 per cent this fiscal backed by a rebound in agriculture and continuance of a robust growth in industry and services sector.
"In view of our revised agriculture growth estimate for
2003-04, we are revising up our GDP growth forecast to a range
of 6.5-6.8 per cent," CII said in its report 'State of the
economy' released today.
This is based on the projection that agriculture will grow by 4-5.5 per cent, industry by 6.5 per cent and services by 7.5 per cent in this fiscal.
The GDP growth had been "disappointing" last fiscal due to poor performance of agriculture sector because of deficiency in monsoon, but the downturn seems to be over, it said.
"In view of the expected rebound in agriculture growth, we are revising up our estimates from 2-4 per cent to a more realistic range of 4-5.5 per cent," CII said, indicating that foodgrain production may go up by as much as 11 per cent in this fiscal.
Dismissing claims that upswing in industry may not be sustained, CII said, "The upswing has just begun and has some way to go before it peaks”.
Industry would grow by 6.5 per cent this fiscal compared to 6.0 per cent last fiscal, it added.
On the price level, CII said, "Average inflation for 2003-04 is likely to be around 5.0 per cent while inflation in manufactured products is likely to be lower at around 4.5 per cent”.
This is based on the projection that agriculture will grow by 4-5.5 per cent, industry by 6.5 per cent and services by 7.5 per cent in this fiscal.
The GDP growth had been "disappointing" last fiscal due to poor performance of agriculture sector because of deficiency in monsoon, but the downturn seems to be over, it said.
"In view of the expected rebound in agriculture growth, we are revising up our estimates from 2-4 per cent to a more realistic range of 4-5.5 per cent," CII said, indicating that foodgrain production may go up by as much as 11 per cent in this fiscal.
Dismissing claims that upswing in industry may not be sustained, CII said, "The upswing has just begun and has some way to go before it peaks”.
Industry would grow by 6.5 per cent this fiscal compared to 6.0 per cent last fiscal, it added.
On the price level, CII said, "Average inflation for 2003-04 is likely to be around 5.0 per cent while inflation in manufactured products is likely to be lower at around 4.5 per cent”.
Bureau Report