News: CII study optimistic about India’s 8% GDP growth

(PTI 03/09/2006) New Delhi - India Inc has contributed significantly in the first quarter for the GDP to maintain a 8 per cent growth rate for the current year, according to a CII report.

The CII State of the Economy report analysed the performance of the economy, compared India's economic growth with other global economies and studied the manufacturing, services and agriculture sectors. It also examined money and inflation, interest rates and liquidity while keeping a watch on corporate performance.

In the corporate sector, profit after tax (PAT) of 2,252 firms have gone up by 38.8 per cent in April-June 2006-07 over the corresponding quarter in 2005-06. Sales rose by 28 per cent in the first quarter this fiscal compared to the year-ago period, the report said.

Manufacturing sector recorded a whopping 54.5 per cent growth in PAT, whereas it had recorded just 18.1 per cent in the same period a year ago. The impressive growth in PAT was the result of increase in net sales from 19 per cent to 29 per cent relative to non-operative expenses, the report shows.

Mining and electricity sectors dragged down the Index of Industrial Production (IIP) because their growth rate took a beating from 10.4 per cent to 10.1 per cent. The IIP could move just over 10 per cent because the manufacturing sector recorded a growth of 11.2 per cent, it said.