New Delhi, Nov 14: Upbeat over the seven per cent growth projection, the industry today said the optimistic forecast in the mid-year review by the government was in line with the forecasts made by them earlier. It, however, cautioned that despite the favourable growth trends evinced this fiscal, the situation on the domestic front is not sufficiently beneficial to revive the confidence in the industry.

FICCI said the seven per cent rate of growth supported by robust agricultural growth rate would stimulate purchasing power leading to multiplier effect on industrial order books of Indian corporates. "The control of inflation is an indication that economy is not overheating despite significant growth momentum," Amit Mitra, Secretary General of FICCI said in a statement.

There is an urgent need to reinvigorate the economy by providing an impetus to demand by taking steps to augment capital investment by enhancing public investment in infrastructure, PHDCCI President P K Jain said "Seven per cent growth forecast for the current fiscal announced by the government is in line with our own prediction for 2003-04", Confederation of Indian Industry (CII) added.

The confederation had forecast a 7.2 per cent growth in its post monsoon assessment sometime earlier. It said the optimism about India's economy is also expected to be carried over to the next year as projected by a CII survey which pegged growth at 6.5 per cent for the next year as well.

Bureau Report