Industry expects GDP growth close to 8% over next couple of years, says CII

CII report said Rs 500 billion worth of investments have been recently announced

Industry is expecting the GDP to grow by close to 8 per cent over the next couple of years, as strong reforms process and fiscal prudence have laid a solid foundation for growth, CII said in a report.

"The economy is in a sweet spot right now as the adjustment process regarding major reforms of the past few years is largely stabilised and industry is ready for a fresh phase of investment while capacity utilization builds up," it said.

It said Rs 500 billion worth of investments have been recently announced.

A CEOs (chief executive officers) opinion poll showed that 82 per cent of them expect GDP (gross domestic product) growth to be higher than 7 per cent for the year 2018-19, with 10 per cent of them expecting growth to be above 7.5 per cent.

"Industry is looking forward to GDP growth rate picking up to close to 8 per cent over the next couple of years. Fiscal prudence, able macroeconomic management, and strong reforms process have set a sound foundation for growth," it said.

In the manufacturing sector, the overall opinion of members was that demand is healthy, although input costs are rising.

CEOs noted good performance across sectors such as automotive, white goods, steel, cement, and capital goods. In the ICT sector, CEOs stated that the outlook is 'good' and that manufacturing of smartphone components is set to go up, indicating upward local value-addition, it said.