Expressing optimism on the India’s economic growth, the industry body, Confederation of Indian Industry (CII) has said that the Indian economy is on a recovery path and investments will pick up. It also expects that the country to record growth of 7.3-7.7% in 2018-19. It added that growth will be aided by several major development campaigns such as Make in India, Digital India, Swachh Bharat, Clean Energy and others gaining traction, as well as recovery in the global economy and expectations of a normal monsoon.
On the sectoral front, the industry body said that sectors like consumer non-durables, two-wheelers and tractors are witnessing strong rural consumption, as prudent macroeconomic management has encouraged growth and investments for capacity expansion are being planned as demand conditions recover. Besides, the capital goods sector is showing steady improvement and order books are filling up. Exports, too, are poised to grow at a faster pace in the current fiscal year, which started on a good note. It also said that the government has avoided slippage in the fiscal deficit despite the rise in oil prices. Inflation too has remained under control to the extent possible even as cost of oil is going up.
CII highlighted eight key areas where reform measures have unlocked growth forces, that includes India’s biggest reform Goods and Services Tax (GST), emphasis on ease of doing business, Insolvency and Bankruptcy Code, liberalisation in foreign direct investment (FDI) policy and high infrastructure spending. Moreover, CII President Rakesh Bharti Mittal has said that the impact of sustained structural reforms is now being felt on the ground as a mammoth economy is turning around. He added that businesses across several key sectors are experiencing firm growth in sales and orders, indicating better capacity utilisation and higher investment expectations.
