FII inflows to slow in 2005: Assocham

New Delhi, Jan 26 | Updated: Jan 27 2005, 05:30am hrs
Hardening US interest rates and a strengthening dollar could stem crucial FII investment flows in the capital markets during the initial months of 2005, reveals an Assocham poll of top CEOs.

Seventy eight of the countrys leading chief executives polled by Assocham Business Barometer are not sure whether 2005 will see the capital flows from FIIs seen in 2004. They are not willing to bet on FIIs in view of the high volatility in the market place.

Around 44% of the respondents see rising crude oil prices as the biggest worrying factor in the months to follow with another 26% listing pressure on interest rates as a major concern.

Fiscal deficit and inflation were other major issues that were seen impacting industrial growth. An overwhelming 94% of the respondents felt that the $75 billion export target was achievable in wake of the strong recovery in the global economy.

A majority also feel that the sustainability of robust iundustrial growth will largely depend on the agricultural sector in the current fiscal. According to them the country should aim for 6-8% growth in the primary sector.