New Delhi: Estimation of 7.6 percent GDP growth in next FY is already coming under doubts. Along with India Inc, economic think tank is also having apprehensions on the estimations done by the government for next FY. India Inc maintains that without developments on economic front this would not be possible. In the report released by Standard Chartered Bank, it is said that India’s GDP growth will be 7.1 percent. Prior to that, IMF and World Bank report also lacked any optimistic remarks on India.  

After seeing the proposals in Union budget 2012-13, Standard Chartered Bank has reduced its estimation for GDP growth from 7.4 percent to 7.1 percent. Bank has reduced its estimation after taking into account inflation figures and strong monetary policy. As well hike in excise duty and service tax are also one of the reasons behind reducing the estimated figure.

While presenting Union Budget 2012-13, the Finance Minister has set a target of 7.6 percent GDP growth rate in next fiscal. He also mentioned that there may be a possibility of shortfall or surplus by one fourth of the estimated figures. Industry bodies are not bullish on achieving the target set by the government. President of CII B Muthuraman says that achieving this target will not be possible without checking inflation especially when excise duty and service taxes have been increased.

FICCI General Secretary Rajiv Kumar says that growth rate of 7.6 percent can be achieved only when the government initiates economic reforms in next 2-3 months. GDP growth rate in current FY is estimated at 6.9 percent or below.