Projecting a higher growth rate of 8.3 per cent, the Confederation of Indian Industry on Thursday tempered the optimism with the caution that hardening interest rates, below-normal monsoon and spiralling oil prices could cut-off the crescendo.
"The Indian industry is forecast to grow at 8.3 per cent in 2006-07 with the thrust coming from the industrial and services sector," CII's new president R Seshasayee said in his inaugural press meet.
He said while the industrial growth this fiscal was likely at 9.1 per cent, the services sector will grow at 9.9 per cent. Agriculture was forecast to pick up from last fiscal's level of 2.3 per cent and grow at three per cent, Seshasayee said.
But Seshasayee sought greater engagement of India in world trade by repositioning itself from a low-cost country to creative and innovative product developer and wanted more labour law flexibility and improved infrastructure. He asked India Inc. to focus on innovation rather than just being a low-cost developer.
"The next phase of competitiveness should be triggered by innovation. India needs to reposition from a low-cost manufacturer to a creative and innovative product developer to become the laboratory and design centre of the world," Seshasayee said.
CII said that even as the Indian economy was 'rapidly getting externalised', India needed to incresae its share in world trade.
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