Indian economy is expected to show a marginal decline in GDP growth to 9.2 percent in the current fiscal from 9.4 percent in 2006-07 with services sector and industry maintaining the momentum, CII has said.

According to the chamber, the agriculture sector would show a moderate three per cent growth, against 2.7 percent in 2006-07.

Industry and services sector are expected to grow at 9.4 percent and 11.2 percent respectively during 2007-08.

"On the whole, CII expects the GDP growth to be 9.2 percent during 2007-08, with agriculture growing at 3 percent, industry at 9.4 percent and services at 11.2 percent," the chamber said in its 'state of the economy' report.

The Indian economy had registered a 9.4 percent GDP growth in 2006-07, highest in the last 18 years, due to a stellar performance by manufacturing and services sectors.

In its quarterly analysis of economy for the January-March period, the chamber said in spite of appreciating rupee impacting exports, country's GDP grew at 9.1 percent primarily led by 19.35 percent growth in corporate earnings.

It said appreciating rupee had a negative impact on profits of textile and leather sectors during the fourth quarter with profit margin expected to erode further to 10.4 percent during the next six months.

Service sector companies registered a 45.68 percent growth in profits compared to 10.32 percent growth in the corresponding quarter last fiscal. Manufacturing sector, however, reported a slowdown in profits during the quarter to 7.91 percent from 15.17 percent in Q4 2005-06.

Tradeindia News Bureau

(Tradeindia Expert)

Tradeindia.com

Tradeindia.com
New Delhi, India