Assocham raises GDP growth forecast to 9%

Keeping in mind the growing rate of investment, the Associated Chambers of Commerce and Industry of India (Assocham) has revised its earlier projection of 8.7% gross domestic product (GDP) growth in fiscal 2007-08 to 9%.

Of the 175 CEOs surveyed in the first two weeks of this month across different segments of economy, 65% said that the next phase of the GDP growth will be led by high rate of investment, evident in several sectors.

With improvement in private and public savings, the gross savings rate has touched 34% of the GDP while investment rate is around 35%, an Assocham release said.

The investment momentum is expected to continue on the back of huge capacity expansion in infrastructure sectors, increased budgetary allocations by the government and corporate capital expenditure.