Date:27/06/2006 URL: http://www.thehindubusinessline.com/2006/06/27/stories/2006062702090700.htm

Back Economy to grow at 8 pc: CII

Our Bureau

New Delhi , June 26

The CII has predicted that the economy will grow at eight per cent in the current fiscal, marginally lower than 8.4 per cent recorded in the last fiscal.

The chamber has attributed the lower expectation of the GDP growth to hardening of interest rates, rising fuel prices and inflation.

The economy will still be able to log eight per cent growth as the major economies around the world are growing faster and agriculture may repeat last year's good performance on the back of a normal monsoon, according to the chamber.

The CII has lauded the effort of the Reserve Bank of India in keeping inflation below its own projected target and achieving balance between inflation, liquidity, and growth.

However, it said that repeating the act this year may prove to be a challenging task considering the spiralling oil prices and fast changing domestic and global macro-economic conditions.

The chamber has commended the efforts of the Government in increasing tax revenues in 2005-06.

But it has stressed on furthering of this effort by implementing balanced tax structure.