Ficci on Monday said the Indian economy could grow at a slower pace of 6.9 per cent in the current fiscal, as against 8.5 per cent in the previous year.
“The fiscal year 2011-12 has the possibility of posting a GDP growth rate of 6.9 per cent based in weighted average,” the Ficci Economic Outlook Survey said.
As many as 33 per cent of the respondents felt the economy could grow between 6.5 per cent and 6.9 per cent in FY2011—12.
The remaining 67 per cent feel that the growth rate will touch 7 per cent, the survey said.
The government expects the Indian economy to grow at around 7 per cent in the current fiscal. The pace of growth is slower than the 9 per rate cent projected at the time of the Budget on account of the slowdown in the global economy.
The survey further said the inflation rate would be 7 per cent by March-end, based on the weighted average.
“More than 50 per cent of the respondents feel that the inflation rate would be around 7-7.5 per cent in March-end, 2012. Only 24 per cent of the respondents fell that inflation would still stick around 7.5 per cent in the next fiscal,” the survey said.
Overall inflation has remained near double digits since December, 2010. It eased to 7.5 per cent in December, 2011, driven mainly by the drop in prices of food items. The Finance Ministry expects inflation to come down to 6—7 per cent by March—end.
“Notwithstanding the decline in inflation, the majority of the respondents still believe that the RBI may not go for a cut in the repo rate... A greater number of respondents believe a CRR cut may be a better option as compared to repo rate cut,” the survey added.