“The increase in optimism about the growth prospects of the Indian economy has been very evident in the past few months and is here to stay. We expect GDP growth to be around 8.3% during FY11 backed by strong investment as well as consumption demand. The Industrial sector is expected to play a crucial role in driving the growth in GDP during FY11. IIP growth is expected to remain robust at 10.3% during FY11. Focus on infrastructure spending by the government and an increase in investment demand by the corporate along with improved consumption would provide impetus to the industrial production. We expect investment rate to increase to 37.3% during FY11. Nonetheless, elevated commodity prices do remain a major concern and if unaddressed could pose a threat to the economic growth prospects. With inflation expected to remain at double digit levels in the first few months of FY11, the RBI might take some measures aimed at arresting the mounting inflationary pressure, though in a calibrated manner without affecting growth”, said Yashika Singh, Head, Economic Analysis, Dun & Bradstreet India.
“The results of the sector survey conducted by D&B also reiterate the optimism existing in the business community. Almost 90% of the survey respondents from the manufacturing sector have anticipated an increase in their sales volume and order book position indicating their expectation of robust demand conditions”, she added.
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