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Industry body Federation of Indian Chambers of Commerce and Industry (Ficci) today said that there are several positive signals on the horizon, in terms of the Gross Domestic Product (GDP) data. The GDP data released today indicated a growth of 4.8% in Q4 2012-13 and 5% in FY13. However, Ficci said that low growth though anticipated brings in some disappointment and is the least in almost ten years.
"The slew of macro data released recently does indicate a silver lining. Gradual signs of turnaround are visible and a growth in the range of 6.0-6.5% seems attainable this fiscal. Further, the monsoons are expected to be normal and this is definitely a positive signal to begin with," said A Didar Singh, Secretary General, Ficci.
Singh added that the price levels have seen considerable softening, IIP numbers are somewhat better and all efforts are being made to spur the investment activity. "We are hopeful that if we continue to tread on this path keeping in sight the commitment to reform agenda, we shall soon be out of the woods," he said. Singh.
Ficci said that the Reserve Bank of India (RBI) has already cut the repo rate by 75 bps this year and declining inflation has given some additional space to consider further cuts in the policy rates. It further said that sector wise growth indicated a slowdown in all the three broad sub segments.
The overall industry sector posted a growth of 2.1% in FY13, the corresponding figure last year was 3.5%. The services sector growth was reported at 7.1% in FY13 (vis-à-vis 8.2% growth last year) led by a discernible moderation in financing, insurance and real estate and business services and trade, hotels, transport and communication.
The financing, insurance, real estate and business services growth declined from 11.7% in 2011-12 to 8.6% in 2012-13.
