Investment in India is likely to pick up in the current financial year, raising hope for revival in the economic growth as a significant number of companies plan capacity expansion, a survey has revealed.
According to a CEOs' survey conducted by the Confederation of India Industry (CII), 44 percent of businesses plan to increase their domestic investment in the current financial year.
"Even in the present milieu of slowing economy, 37 percent of the respondents did not see a decline in their investment level in the current year," CII said in the survey report.
CEOs made similar projection about their investment outside India. While 50 percent did not predict any change in their foreign investment, 37 percent saw it increasing during the current financial year.
"This is an encouraging development in the midst of negative sentiments in the economy and all efforts should be made to ensure that the policy environment enables these intents to be translated on the ground," said CII director general Chandrajit Banerjee.
On measures required to revive growth, 52 percent of the respondents accorded their first priority to clearing 50 large projects worth more than Rs.1,000 crore and 200 large projects worth between Rs.250 and Rs.1,000 crore within the next six months.
For 24 percent other respondents, the Reserve Bank of India (RBI) intervention by way of cut in repo and CRR rates seemed to be among the topmost policy actions.
Indicating that the fiscal deficit continues to remain a major issue, a significant 17 percent of respondents ranked adherence to fiscal deficit target as their top policy priority.
The survey, conducted among 75 national council members of the CII, predicted that the turnaround in growth may take place only from next fiscal.
In the prevailing circumstances, majority 80 percent of the respondents do not see GDP growth for the current year crossing 5.5 percent.
India's GDP growth slumped to five percent in the financial year ended March 31, 2013, the lowest in a decade.