For the agricultural sector that grew by 4.5 per cent during FY'08, the normal monsoon conditions have led to an increase in the food grain production but at the same time some cotton growing regions in the country witness sparse rain with sowing delayed by a fortnight that might hit the textile industry with decline in production and exports.
Almost 67 per cent of the CEOs responded that agriculture sector might maintain a decent growth of 4.0 per cent growth in the financial year 2008-09 on account of rising food prices that will help boost the farmers to produce more.
In the services sector, FY '08 was a tough time with rupee appreciation and sub prime crisis forcing firms to cut on staff and project cost.
The financial year '09 is providing an inflationary pressure that is compelling RBI to take tight monetary measures impacting the growth of banking and financial services.
61per cent of the respondents felt that financial services, which contributes to 14.7 per cent share in GDP, may register lower growth if RBI uses further hike in CRR to contain inflation as stated by.
According to 73 per cent of the ABB participants, in the transportation sector, only the railways is helping the sector to sustain the growth as the rising petrol and diesel prices is hitting the road freight and private transport along with the hike in air turbine fuel reducing air traffic.
The services sector may witness deceleration in growth at 9.0 per cent from the previous 10.8 per cent in FY '08 due to the slowdown in financial services and transportation sector, according to 79 per cent of the corporate heads.
Most of them felt that other components of services like telecom, software, engineering services and services export (IT & BPO) will lead the growth of the sector.
The Associated Chambers of Commerce and Industry of India
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