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

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.

"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.