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GDP to grow by 6.5-6.9% after good monsoons: ICRA
New Delhi, Oct 27: Economy is poised to grow by 6.5 to 6.9 per cent in this fiscal following a good monsoon and an expected robust 9.0 per cent growth in agriculture, ICRA said today.
New Delhi, Oct 27: Economy is poised to grow by 6.5 to 6.9 per cent in this fiscal following a good monsoon and an expected robust 9.0 per cent growth in agriculture, ICRA said today.
"Excellent monsoon and a likely new record agricultural output, fiscal year 2003-04 appears set to clock growth well in excess of 6.5 per cent. Perhaps approaching 6.9 per cent, the increase contributed by a very sharp increase in agriculture GDP by as much as 9.0 per cent," ICRA said in its report 'money & finance' released here today.
ICRA revised upward its own growth target to 6.9 from 6.0 per cent based on good monsoon followed by record harvests.
Expecting a record kharif crop at 110 million tonnes along with better oilseeds, sugarcane and cotton output, ICRA also said the country is poised to post a record rabi harvest. The rating agency, however, pegged growth of non-agriculture sector at 6.4 per cent with growth in industry and services slowing down a bit this fiscal.
Industry is slated to grow by 5.8 per cent this fiscal compared to 6.0 per cent in 2002-03, ICRA said.
ICRA attributes the slower growth in industry to depressed growth in mining and quarrying, gas, electricity generation and water supply sectors. With better corporate results and surge in domestic and international demands, ICRA said, "It is most likely that manufacturing output growth will continue to be strong for the rest of the current fiscal."
Industrial growth would be somewhat dampened by the lower growth in electricity generation. Bureau Report
ICRA revised upward its own growth target to 6.9 from 6.0 per cent based on good monsoon followed by record harvests.
Expecting a record kharif crop at 110 million tonnes along with better oilseeds, sugarcane and cotton output, ICRA also said the country is poised to post a record rabi harvest. The rating agency, however, pegged growth of non-agriculture sector at 6.4 per cent with growth in industry and services slowing down a bit this fiscal.
Industry is slated to grow by 5.8 per cent this fiscal compared to 6.0 per cent in 2002-03, ICRA said.
ICRA attributes the slower growth in industry to depressed growth in mining and quarrying, gas, electricity generation and water supply sectors. With better corporate results and surge in domestic and international demands, ICRA said, "It is most likely that manufacturing output growth will continue to be strong for the rest of the current fiscal."
Industrial growth would be somewhat dampened by the lower growth in electricity generation. Bureau Report