New Delhi: The constant rise in the rate of interest by the Reserve Bank of India has shaken the confidence of industrial sector. Apart from expensive debt, decaying infrastructure sector and rising raw material costs are  two otherconcerns for the industrialists.

It has reduced the number of companies which deliver better earnings. The number of companies which are not confident about the future of the economy have gone up.

According to CII's quarterly Business Outlook Survey, the Business Confidence Index (BCI) for April-June, 2011 declined to 62.5 from 66.7 in the previous quarter (January-March).

300 companies participated in the survey.

29 percent companies opine that, “The economic growth rate for the current financial year will remain at around 8.5 percent.” While 33 percent companies stated that the growth rate will remain between 8 and 8.5 percent for this year.

48 percent of the companies which participated in the survey claimed, “The rate of inflation will go beyond 8 percent this year.”

 officials of  a number of companies said, “The rate of interest will continue to surge for the moment.”

The RBI has increased its key policy rates nine times since March last year to curb inflation. Experts have said RBI is likely to go for further rate hike during its next mid-quarterly review in June.