India's economy may grow by 6-7% in FY10: CII

India Inc today projected the country's economic growth in the range of 6-7 per cent for this fiscal, but slackening global demand remains a major concern for the community, industry body Confederation of Indian Industry (CII) said.

"This indicates a strong recovery sentiment for the Indian economy," the CII said in a survey. Out of 134 respondents participating in the CII Northern Region Business Outlook Survey, more than half said that India's economic growth is likely to be in the range of 6-7 per cent in the current fiscal.

"Global economic instability followed by slackening consumer demand are the two most important concern areas," it said. The survey also said that the overall outlook for business is better for the current six months (October-March 2009-10) compared to the previous six months.

Over 50 per cent of the respondents expects an increase in investments during the current six months. On exports, it said that the outward shipment seems to be much better for October-March.

"Fifty-one per cent of the respondents expected an increase in volume of exports," it added. India's exports are on downslide since October 2008 due to the global slump in demand. The Indian economy grew by 6.7 per cent in FY09.