Lower GDP growth forecast is India Inc's number one worry: CII

Says lowering of economic growth projection will impact jobs

Lowering of the economic growth projection by the RBI to 5.5% in the current fiscal is industry's "number one worry" as it would have serious implications on critical aspects, including job creation.

"That is the number one worry because all the problems like current account deficit, in some sense, are because of the reduction in growth rates. It will impact jobs," CII President Kris Gopalakrishnan told PTI.

The central bank, in its First Quarter Review of Monetary Policy today, cut the growth projection for 2013-14 to 5.5% from an earlier estimate of 5.7%, while keeping key rates unchanged and asking the government to take urgent steps to contain the current account deficit. The government in February estimated 6.5% growth for 2013-14.

"In the last two years, very few jobs have been created. Infosys used to recruit about 25,000 people annually. Last year, we hired only 5,000 engineers its a jobless growth, actually. So this is a concern," said Gopalakrishnan, who is also Executive Vice Chairman of Infosys.

He said decision making has slowed down, which is affecting the country's economic growth.

"Decision making has slowed down or come to a halt because of various factors. We are saying that you (the government) are taking decisions, but on the ground there is no result," he added.

The country's economic growth hit a decade low of 5% in the last fiscal on account of poor performance in the farm, manufacturing and mining sectors.

Earlier this month, the Asian Development Bank lowered its growth projection for India to 5.8% in calendar 2013 from 6% estimated previously, citing the slow progress of economic reforms.