New Delhi, Apr 30: The Confederation of Indian Industry today said government and industry should work to achieve the aspirational eight per cent sustained growth of the economy during 2003-10. "We need growth. We need to drive an aspirational growth rate of eight per cent," the newly-elected president of CII Anand Mahindra told a news conference here.
He forecast that the GDP would grow by 6-6.4 per cent this fiscal with an expected 6.5 per cent contribution from the industry and 7.5 per cent from the services sector.
"The government has always been performing the role of a facilitator and it would continue to act as an enabler to help achieve economic growth," Mahindra who is also the vice chairman and managing director of Mahindra and Mahindra said.
To achieve the growth, he said, industry should grow by 11 per cent and exports should surge from the present 50 billion dollars to 103 billion dollars in 2010.
Foreign investment would rise to 24 billion dollars in 2010 from four billion dollars now if GDP grows by eight per cent, Mahindra said.
He said if the economy grows by 6.5 per cent till 2010, then the country would have a GDP of 809 billion, which would increase to 859 billion dollars if it grows by eight per cent.
The CII president said the size of the market would grow to 584 billion dollars on an eight per cent GDP growth as against 550 billion dollars on a 6.5 per cent growth.
Household savings would also increase to 223 billion dollars on a eight per cent GDP growth rate.
Bureau Report