RBI hikes GDP growth projection to 7-7.5 per cent

Mumbai:The RBI revised its projected GDP growth for 2005-06 to be in the range of 7-7.5 per cent from the earlier projection of 7 per cent.

The revision is based on the current assessment of a pick-up in agricultural output and in the momentum in industrial and services sectors.

RBI also expected that the kharif output would register an increase over the previous year's level.

In addition, the improvement in water storage levels over the previous year augurs well for the outlook on rabi production, it said releasing the credit policy.

The Central Bank said prospects for sustained growth in industrial output have improved in an environment of rising investment and export demand, strong corporate profitability and buoyant business confidence.