The Reserve Bank of India's professional forecasters' survey has upped the projections for the corporate sector's profitability growth in the current as well as the next fiscal.
The survey has raised its profit growth forecast for India Inc to 11.3 per cent in 2009-10 from 10 per cent in the last survey. It also significantly revised the projections for 2011 to 18 per cent from 14.5 per cent. The survey's optimism was also reflected in the RBI's third-quarter review of monetary policy announced last week. The RBI said: “The industrial sector recovery is now consolidating. The performance of the corporate sector has picked up. Increased business optimism also reflects brighter prospects for the industrial sector. “Services sector activities have improved. Domestic and international financing conditions have eased considerably, and this too should support domestic demand.” Referring to the 7.9 per cent GDP growth achieved during Q2 of 2009-10, which reveals a degree of resilience, the RBI said subsequent data on industrial production, infrastructure or exports, confirmed the assessment that the economy is steadily gaining momentum. Bank credit, the survey concluded, is expected to grow at a lower clip at 15 per cent in FY2010 as against the previous forecast of 17 per cent. The RBI, in its monetary policy review, had reduced the indicative adjusted non-food bank credit growth projection for 2009-10 to 16 per cent (from 18 per cent projected earlier) due to the increased availability of funds from domestic non-bank and external sources. The survey revised the real GDP growth for FY2010 upwards to 6.9 per cent from 6 per cent in the last survey. For FY2011, the forecasters have assigned the highest probability of 33.8 per cent to the 8.0-8.4 per cent growth range for GDP. The long-term forecast for real GDP growth for the next five years has been projected at 8 per cent, which has been revised upwards from 7.5 per cent in the last survey. For the next 10 years, the GDP is expected to grow at 8 per cent, which has been revised upwards from 7.8 per cent in the last survey. Source : The Hindu Business Line -- Thanks & Regards, Abhishek Kothari -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
