With the economy likely to perform better in the last quarter, industry body Assocham expects the country to clock a growth rate of 7.4 per cent, marginally exceeding the official estimate.
Assocham expects the economy to expand by around 8 per cent during January-March (2009-10) in view of sustained economic activities in manufacturing, recovery in exports and domestic industry intensifying its capacity utilisation.
“...the current fiscal will end up with a GDP growth figure of 7.2 per cent to 7.4 per cent,” chamber’s president Swati Piramal said.
The GDP growth slipped to 6 per cent in October-December quarter mainly on account of fall in agricultural output. The economy had expanded by 7 per cent in the first half.
As per the advance estimates of Central Statistical Organisation, the economy is likely to clock a growth of 7.2 per cent in 2009-10.
After expanding at over 9 per cent for the three consecutive years, the economic growth had slowed in 2008-09 to 6.7 per cent due to the global economic slowdown.
Assocham said the sectors that are expected to make substantial contribution in country’s growth include automobile, telecom, services, engineering and heavy engineering, it said.
The exports sector, which was impacted due to the global demand slowdown, is expected to do better in the last three months of the financial year.
Piramal further said indication are available that capacity utilisation of the domestic industry which was shelved in the past is already reported to over 72 per cent.
“This will further accelerate to provide enough boost for better GDP growth,” she said.
