More than 80% of CEOs expected GDP growth to exceed 7% in 2018-19, according to a poll conducted by the Confederation of Indian Industry (CII), which also showed that more than 80% of them felt that capacity utilisation would increase over the year.
The data from the poll showed that while 72% of the CEOs felt that growth would be 7-7.5%, 10% felt that it would be above 7.5%.
‘8% in two years’
“Industry is looking forward to GDP growth rate picking up to close to 8% over the next couple of years,” Rakesh Bharti Mittal, president of CII, said. “Fiscal prudence, able macroeconomic management and strong reforms process have set a sound foundation for growth.” However, 41% of them felt that private investment would either maintain its level in 2018-19 or deteriorate. The vast majority of the CEOs-82%-felt that capacity utilisation would improve over the course of the current financial year.
Optimistically, 92% of the CEOs felt that consumption demand, one of the main drivers of economic growth, would pick up in 2018-19.
The overall opinion on job creation looks good, with more than half of them saying they expect an improvement in the current year. “On job creation, 56% of the CEOs polled expect jobs to increase during 2018-19 and just 18% believe that job creation will be maintained at the current levels,” CII said in its report.
“On the international trade front, while CEOs expect exports to increase, imports are also expected to increase, thus leading to increase in trade deficit,” the report added. “55% of respondents believe exports growth will pick up in 2018-19 over the pace of 9.9% in 2017-18. Imports are expected to grow faster than the rate of 21.2% as in 2017-18, stated 63% of the CEOs. Increase in trade deficit is thus expected by 61% of participants to go up.”