Jobless GDP growth coming: Ficci survey

Half the respondents in the survey believe that GDP growth could be less than 5.5 per cent in 2012-13. India's GDP growth was at 5.5 per cent in the April-June quarter.

Revealing a sombre mood, the index of Ficci Business Confidence Survey in the first quarter of 2012-13 was at 51.8, sharply down from 60.3 in the fourth quarter of 2011-12.

"...net responses with regard to prospect of employment opportunities has turned negative, the first time since the 2008-09 crisis. Thus, the current economic slowdown coupled with a negative growth in the employment prospects, may drive the economy into a jobless slow growth," Ficci said.

As per the survey, 42 per cent of the respondents said investments will remain at the same level in next six months compared with 48 per cent in the last quarter.

It said weak demand continues to be a concern for corporate India and high cost of credit acted as a constraint for 62.5 per cent participants.

"Further, a significant majority of the respondents also indicated that deficient rainfalls have had a clear impact on the performance of their industry."

About 85 per cent of the respondents reported that current drought situation would have an impact on their industry.

The survey said inflation which has been a cause of concern for long time indicated some reprieve which came down to 6.9 per cent in July--the lowest since

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