CII Pegs Growth At 6.6-7% In 2004-05

New Delhi, May 23 | Updated: May 24 2004, 05:30am hrs
Notwithstanding a change in the government, Confederation of Indian Industry (CII) has predicted the GDP growth between 6.6 and 7 per cent for 2004-05.

CII believes the upswing in the industry and services sectors will continue and indeed accelerate over the next few quarters as domestic and external demands continue to strengthen, it said citing its report on the state of the economy.

Across sectors, companies are preparing to meet rising demands by expanding capacity, modernising their technology and focusing on their marketing strategy, it said.

CII is expecting services sectors to see a sharp growth due to rising incomes in the rural and urban economies.

It expects industry to grow at 7.0 per cent and services at 9.2 per cent. GDP growth is therefore expected to lie in the range of 6.6 to 7.0 per cent, with the outcome most likely to be at the higher end of the range, CII said citing its report.

According to aggregate data on corporate performance analysed by CII, the manufacturing sector has maintained its healthy growth trend over the fourth quarter of 2003-04.

The report points out that the sharp appreciation of the Indian rupee could have an impact on the competitiveness of Indian exports.

However, the recent decline in the rupees value has come as a relief to domestic manufacturers. With the dollar changing direction to appreciate against major currencies in international markets, CII expects less pressure on the rupee to appreciate in the near term, it said.