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FICCI projects 6.7 pc economic growth in next fiscal
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SME Times News Bureau | 28 Jan, 2013
Based on expectations of cuts in key policy rates by the Reserve Bank of
India, the Federation of Indian Chambers of Commerce and Industry
(FICCI) has predicted the economy to grow by 6.7 per cent for 2013-14.
The
chamber, revising its growth forecast upwards from 6.5 percent to 6.7
percent for the next fiscal, said in its Economic Outlook Survey: "This
improvement is largely based on the expectations of a possible cut in
policy rates which is expected to have a positive impact on industrial
growth and consumption."
"The revival in sentiment reflects
cautious optimism and is an indication of improved sentiment post
September 2012 mainly due to the government's renewed thrust to the
reforms agenda," FICCI president Naina Lal Kidwai said in a statement.
FICCI
survey respondents expect a repo rate cut of 0.25-0.5 percent in the
forthcoming review of the monetary policy coming up on Jan 29.
A
majority also felt that a reduction of 0.75 percent to 1 percent in the
repo rate through the next financial year is more likely, which is
critical for revival of growth, FICCI said.
Emphasising that
with inflation risk receding, there was now some scope for easing in
monetary policy, Kidwai said: "The possibility of the RBI (Reserve Bank
of India) cutting rates will provide industry a fresh dose of oxygen and
along with the expected US recovery, will breathe some life back into
industry."
Inflation figures based on the wholesale price index declined to a three-year low of 7.18 percent in December.
On
fiscal deficit, the FICC president counselled carrying forward the
Kelkar Committee report recommendations on fiscal consolidation.
"With
fiscal deficit projections for FY14 at 5.1 percent, the process of
fiscal consolidation should be pursued in right earnest," she said.
On
the current account deficit, most FICCI respondents expected it to be
not less than 4 percent of GDP for financial year 2014.
"With
exports witnessing a decline and global demand likely to remain flat in
the near term, it will be vital to extend support to the
labour-intensive export-oriented units," Kidwai said.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
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66.20
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64.50 |
UK Pound
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87.50
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84.65 |
Euro
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78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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