Economy to grow by more than 8%: Kamath

New Delhi, May 1 (UNI) Exuding confidence in the country's growth story, newly elected CII President K V Kamath today said he expects the GDP to grow by more than eight per cent.

''Despite the slowdown, there is a large pipeline of investments.

The GDP growth will remain above eight per cent,'' Mr Kamath told reporters on the sidelines of a conference here.

Talking about inflation, the ICICI Chief said most prices are undergoing correction, especially the metals. ''Energy prices are going to be under pressure, but that should ease by next year,'' he said.

Consumer prices, globally have been going up with inflation hovering around at seven per cent, he added.

Asked about the global slowdown, Mr Kamath said the country is led by domestic consumption, which comprises about 65 per cent of the total demand.

''There are challenges that the economy faces in form of low agriculatural production, weak supply chain, infrastructural bottlenecks, FRBM targets and balance of trade being under pressure, and inflation,'' Mr Kamath said.

The challenge is also to have a sustainable and inclusive growth, he added.

He said the country should target to double the per capita income in the next 10 years, growing at seven per cent.

According to the CII President, the key risks to achieving these targets would be the economic shocks in form of inflation and surging crude prices.

''Geopolitical risks, climatic change, and the inadequate framework to handle the urbanisation process would also need to be tackled,'' Mr Kamath said.

UNI SR MP PM1940