GDP expected to grow at 9.2% in FY08: CII

Indian economy is expected to show a marginal decline in GDP growth to 9.2% in the current fiscal from 9.4% 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 3% growth, against 2.7% in 2006-07.

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

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

The Indian economy had registered a 9.4% 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 Jan-March period, the chamber said in spite of appreciating rupee impacting exports, country's GDP grew at 9.1% primarily led by 19.35% 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% during the next six months.

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