New Delhi, May 28 (IANS): Industry chambers Confederation of Indian Industry (CII) on Monday said that it expects India's economy to grow at 7.3-7.7 per cent in 2018-19 on the back of "sustained structural reforms", recovery in global markets and a normal monsoon.
The industry body in a statement said that "sustained structural reforms" have led to a rebound in the country's economy as businesses across several key sectors experience firm growth trends.
"The impact of sustained structural reforms is now being felt on the ground as a mammoth economy is turning around," CII President Rakesh Bharti Mittal was quoted as saying in a statement.
"Businesses across several key sectors are experiencing firm growth in sales and orders, indicating better capacity utilisation and higher investment expectations."
According to CII, strong rural consumption is reflected in sectors such as consumer non-durables, two-wheelers and tractors.
"The feedback from businesses is that the rebound in the economy is now firmly entrenched and the positive impact of the actions taken by the government, including major structural reforms, are being felt on the ground," Mittal added.
The industry body credited the growth trend on prudent macroeconomic management which it said has encouraged "growth and investments for capacity expansion are being planned as demand conditions recover".
"The government has avoided slippage in the fiscal deficit despite the rise in oil prices. Inflation too, has remained under control to the extent possible even as cost of oil is going up," the statement said.
CII noted that "capital goods" sector has shown a steady improvement and order books are filling up. This sector is a key indicator of a country's economic activity.
"Exports too, are poised to grow at a faster pace in the current fiscal year, which started on a good note," the industry body said.
The CII statement pointed to eight key areas where reform measures have "unlocked growth forces" like the introduction of the GST; strong emphasis on ease of doing business; Insolvency and Bankruptcy Code; increase in the the Foreign Direct Investment (FDI) limits in sectors such as insurance, real estate and defence manufacturing.
Besides, a rise in infrastructure spend; initiatives to strengthen micro, small and medium enterprises (MSME) and "initiatives in agriculture have helped improve rural incomes".
In addition, CII said that introduction of fixed term employment across sectors "will impart flexibility to the use of labour".
"With several major development campaigns such as Make in India, Digital India, Swachh Bharat, Clean Energy and others gaining traction as well as recovery in the global economy and expectations of a normal monsoon, CII expects growth to record 7.3-7.7 per cent in 2018-19," the statement added.