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NEW DELHI, Aug. 3

WITH the delay in monsoons and the declaration of drought in many States, the growth of the overall economy is likely to end up at around 5-5.4 per cent in 2002-03. At least, that is the general impression. However, according to a CEOs' snap poll conducted by the Confederation of Indian Industry (CII), the industry is still optimistic of achieving double-digit growth in terms of sales and profits in the current financial year.

While 54 per cent of the respondents to the snap poll felt that the growth in sales would be about 10-20 per cent in the current fiscal, 48 per cent predicted that profits for their companies would also fall within the same range.

Emphasising on the importance of investments in infrastructure, to removing related bottlenecks and enhancing Indian industry's competitiveness, a majority of the CEOs felt that this would also be a key driver of FDI inflows into the country. Reducing the number of Government clearances and easing restrictions on entry as well as exit are the two other critical issues that need to be addressed to facilitate greater FDI inflows. Foreseeing a significant impact of the drought situation on the country, 71 per cent of the CEOs felt that the GDP growth would fall below 5.4 per cent in 2002-03. Also emphasised was the need to release the surplus FCI foodgrains and introduce food-for-work programmes nationally, aimed at building rural roads and infrastructure.

Meanwhile, on the question of using the foreign exchange reserves (which have risen to almost $60 billion) as a tool for economic growth, 91 per cent of the CEOs in the survey endorsed alternative uses of the reserves. Liberalised norms for overseas investments of Indian companies and financing growth-oriented projects constitutes optimal use of the country's exchange reserves, according to the respondents. Some of the respondents also suggested aggressive promotion of exports by extending credit lines to other developing countries and reducing India's foreign debt.

The respondents to the snap poll included Mr Arun Bharat Ram, Mr Adi Godrej, Mr Jagdish Khattar, Mr G.V. Sanjay Reddy, Mr M.V. Subbiah, Mr Suneel M. Advani, amongst others.

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