The economic growth of 7.4 per cent in the July-September quarter indicates that the country is steadily moving on the recovery path, the industry said today.
The GDP growth is likely to exceed 7.5 per cent for the full year, India Inc said after the official data showed that the economy grew at 7.4 per cent for the second quarter of the current fiscal.
The industry chambers, however, said that the government should continue with its reforms momentum to boost manufacturing and overall economic growth of the country.
In a year when external demand remains a drag on the economy, this would be considered a strong performance, CII said adding the acceleration in the manufacturing sector shows that the government's policy direction is bearing fruit.
"Policy measures therefore need to focus on a revival in project execution in manufacturing, real estate and infrastructure," the chamber said in a statement.
Ficci said that an uptick has been noted in GDP numbers and "we are steadily moving on the recovery path which is an encouraging sign".
It said that on the backdrop of this growth rate, the government needs to maintain this momentum and move on to a higher growth trajectory, which calls for continuous reforms.
"The global economy has been volatile and domestic demand is restrained....There has been some moderation in the confidence level of India Inc and the same has been reflected in our latest Business Confidence survey. The domestic private investors still have a guarded outlook with regard to investments," Ficci said.
It is important to remain proactive on the reforms front and focus on implementation, it added.
Sharing similar views, PHDCCI said that there is a lot of potential to enhance the country's GDP in the coming times with effective implementation of dynamic reforms announced by the government during the recent months.
Manufacturing sector growth at 9.3 per cent in the second quarter indicates that the efforts of government are becoming visible.
"Reforms in the agriculture sector would be critical to strengthen the growth of the sector and to address the supply side bottlenecks," it said.
