GDP to grow at 6.2% in FY05: CMIE

Backed by investment activity and healthy performance of the services sector, the economy is expected to grow at 6.2% in 2004-05, according to the Centre for Monitoring Indian Economy (CMIE).

The economic think-tank, in its monthly economic review, said nominal agricultural growth, on top of the 9.1% growth in 2003-04, and revival in investment activity would be responsible for the growth in the
current fiscal.

The economy has clocked growth of 7.4% and 6.6% in the first and second quarters, respectively. The third and fourth quarters are likely to show a growth of 5 and 5.5%, respectively, the release said.

The lower growth in third quarter would be largely due to the base effect of the 10.4% growth recorded in the third quarter of 2003-04, it added.

India is likely to register a surplus of $5 billion on the current account of balance of payments. "BoP is strong and expected to remain healthy in the second half of the current fiscal," CMIE said in a release today.