News: 'India to log 8 pct plus growth in 06/07'

(RTR 30/08/2006) New Delhi - India's economic growth is expected to stay well above 8 percent in the fiscal year to March 2007 on the back of robust expansion in manufacturing, a lobby group said on Wednesday.

"With the manufacturing sector achieving its 10-year peak performance of 11.2 percent in the first quarter of the current fiscal and services showing a booming performance, overall GDP growth will remain well above the 8 percent mark in 2006-07," the Associated Chambers of Commerce and Industry (ASSOCHAM) said.

The economy is estimated to have expanded by 8.4 percent in 2005/06.

The ASSOCHAM survey of 270 chief executives said concerns on high crude prices and rising global interest rates do bother industry leaders who have lined up huge investments for capacity expansion to meet growing domestic and export demand.

However, it said the growing pace of consumer demand and the investment requirements would more than make up for the hiccups generated by higher interest rates and rising energy prices.

Part of the optimism for maintaining growth of more than 8 percent comes from vibrant performance in the external sector helping merchandise as well as services exports maintain a good performance, it said.

The survey said CEOs want interest rates to remain steady in the coming months for India to attain high economic growth.