NCAER sees 2004-05 growth at 6.7 pc

NEW DELHI: Close on the heels of a UN body projecting a slowdown for India, NCAER on Monday said the economy was expected to tick only 6.7 per cent growth this fiscal due to an all round deceleration in agriculture, industry and the services sector.
NCAER said the fiscal deficit of the Centre was expected to be 5.3 per cent of GDP.
"GDP is expected to grow by 6.7 per cent during 2004-05" in contrast to an expected 8.13 per cent growth in 2003-04, the Delhi-based economic thinktank said.
With an expected normal rainfall at the back of very high growth in the last year, it forecast that agriculture would grow at 3 per cent in 2004-05 against projected 10.7 per cent for 2003-04.
"This contraction in agricultural growth as compared to 2003-04 would lead to a reduction in overall demand as well... This would have impact on industry and services growth," it said, reasoning that it was due to lack of demand.
Though the industrial sector was likely to be "buoyant" this year, it said, "there would be deceleration in growth as compared to last year" and expected that industry would clock 6.8 per cent growth as compared to 7.5 per cent projected for 2003-04.