GDP growth forecast shows remarkable turnaround: India Inc

India Inc today said the 7.2 per cent GDP growth forecast for the current fiscal shows remarkable turnaround in the country's economy and private investments must be encouraged to accelerate the momentum.

"The 7.2 per cent growth (estimates) during 2009-10 against 6.7 per cent last year shows a remarkable turnaround in the face of difficult global environment," Ficci said.

According to advance estimates released by the Central Statistical Organisation today, farm output is estimated to contract by 0.2 per cent, services to record moderate growth and manufacturing is estimated to expand by 8.9 per cent.

"On the whole, the figures reveal a very robust picture of Indian economy and growth," Ficci said.

CII said it is imperative that this rate of growth accelerates further in the coming year so that India move towards achieving the long-term growth target of 9 per cent.

"For this to be achieved, it is important that investment growth takes place. Private investment must be encouraged by keeping interest rates reasonable while stepping up public investment especially in infrastructure," it said.

Assocham said manufacturing, electricity and mining have so far been major pusher for growth rates.

"Agriculture will remain under pressure not only in current fiscal but in next too as not much is happening on application of technologies to improve the farm growth," it said.