Mumbai: India's economy is expected to pick up by one per cent to six per cent in 2002 as compared to five per cent in 2001, according to the Asian Development Bank (ADB).

In its annual outlook released in Manila on April 9, ADB said India would profit from the US rebound and the global economic recovery, stimulating export growth and industrial production.

"In 2003, the Indian economy is likely to grow by 6.5-7 per cent while the current account deficit will remain moderate, at about one per cent of gross domestic product (GDP) in 2002," the report said.

According to ADB's annual publication, which forecasts economic trends in the region, India's inflation should hover around four per cent.

It said the GDP growth in 2001 was slightly higher than the four per cent in 2000, but below the 6.5 per cent average rate of the previous five years.

Agricultural growth was estimated at 5.7 per cent in 2001. Yet, prospects for sustained improvement depended on investment to ease infrastructure bottlenecks and to modernise the sector, it added.

ADB said India's services sector continued to fuel its economy as it recorded an increase of 6.5 per cent compared to 4.8 per cent in 2000 thus reflecting a robust performance in financial, business and high-tech services.

PTI