Industry is expecting the GDP to grow by close to 8 percent over the next couple of years, as strong reforms process and fiscal prudence have laid a solid foundation for growth, CII said in a report.
Industry is expecting the GDP to grow by close to 8 percent over the next couple of years, as strong reforms process and fiscal prudence have laid a solid foundation for growth, CII said in a report.
"The economy is in a sweet spot right now as the adjustment process regarding major reforms of the past few years is largely stabilised and industry is ready for a fresh phase of investment while capacity utilization builds up," CII President Rakesh Bharti Mittal said.
CII said Rs 50,000 crore worth of investments have been recently announced.
A CEOs (chief executive officers) opinion poll showed that 82 percent of them expect GDP (gross domestic product) growth to be higher than 7 percent for the year 2018-19, with 10 percent of them expecting growth to be above 7.5 percent.
"Industry is looking forward to GDP growth rate picking up to close to 8% over the next couple of years. Fiscal prudence, able macroeconomic management, and strong reforms process have set a sound foundation for growth," Mittal said.
In the manufacturing sector, the overall opinion of members was that demand is healthy, although input costs are rising.
CEOs noted good performance across sectors such as automotives, white goods, steel, cement, and capital goods. In the ICT sector, CEOs stated that the outlook is 'good' and that manufacturing of smartphone components is set to go up, indicating upward local value-addition, it said.