FICCIScreenshot from FICCI's official youtube link

According to the latest economic survey by the Federation of Indian Chambers of Commerce and Industry (FICCI), India's Gross Domestic product (GDP) would surge 5.6% in 2014-15. The report pointed out that the interest rate cut by the Reserve Bank of India would not affect the growing economy during the first and second half of the current fiscal.

GDP range for the current fiscal is expected to be between 5.3% and 6% versus 5.3% in the previous year, reported PTI.

"We see the confidence among investors slowly returning and hope that going ahead, the momentum on implementation front will build up," the report said.

FICCI applauded BJP-led Modi's first 100-days' governance. "The new government guided by the objective of restoring growth and governance has given very positive policy signals in its first 100 days," it said.

Weak monsoon are not expected to have a big impact on agricultural growth, hence the sector growth will remain steady. Industrial sector is expected to grow 4.7% in FY15 compared to 3.1% in the previous fiscal. The service sector is anticipated to change negligibly at 6.9% in FY15.

A survey and mathematical assumptions made by economists with regard to exports and current account deficit concluded no risks. The CAD and GDP ratio for current fiscal is estimated at 1.9%.

The report also mentioned other major areas that the government must focus on:

World class infrastructure Continued Power supply
Resolving labour issues Reducing cost and duration of land acquisition
Hassle-free government approvals Development of innovation hubs with world-class facilities
Enhancement of credit to small- and large-scale industries Simplification of all types of taxes
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