Country's GDP to move northward to 8.53%: NCAER

New Delhi, Aug 10 (UNI) Inspite of higher inflation, stronger rupee and tight money policy, the NCAER today revised the country's overall real GDP growth northward at 8.53 per cent in this fiscal, against the previous forecast of 8.3 per cent.

''The revised forecast places overall real GDP growth at 8.53 per cent as compared to the previous forecast of 8.3 per cent.

Higher growth has been largely due to agriculture and industry,'' National Council of Applied Economic Research (NCAER) said in its quarterly survey.

It added expectations of better monsoon and the impact of higher inflows have led to higher growth estimates for these two sectors.

The survey said the real GDP from agriculture and allied sectors registered an annual growth of 2.6 per cent in 2006-07, as rainfall was not well distributed during the monsoon period. Prices of primary articles rose sharply during the year as even global commodity markets experienced short supplies.

It said that agricultural production outlook for 2007-08 has improved. The weighted average index of rainfall during June-July this year is 18 per cent above normal rainfall, against eight per cent for the same period last year.

Agriculture sector is expected to grow at 3.35 per cent as compared to 2.6 per cent earlier estimated.

Industry is poised to grow at 9 per cent against the earlier projection of 8.7 per cent.

In a similar trend, the services sector is expected to post a 10.09 per cent growth against a previous estimate of 9.9 per cent.

UNI