New Delhi: Asian Development Bank (ADB) today (Dec 11, 2003) revised upwards its growth projection of Indian economy to 6.7 per cent in 2003 but cautioned that GDP (Gross Domestic Product) was expected to grow by 6.3-6.4 per cent next year.

"The Indian economy is projected to grow at 6.7 per cent this year. The GDP growth projection has been revised upwards from 6.3 per cent forecast earlier," ADB India's chief economist, Sudipto Mundle, said at a press conference in New Delhi.

He said the country's growth rate was expected to be lower at 6.3-6.4 per cent next year, as this year's growth was being driven by a remarkable turnaround of the agriculture sector after the good monsoon.

"India's underlying trend of growth rate has accelerated to almost 6.0 per cent. On top of this, India is entering the upswing of a business cycle, implying an expected growth rate of 7-8 per cent during the next 3-4 years," he added.

Mundle, however, observed the growth in recent years was "jobless" as there was no increase in labour employment. Most of the growth was coming from capital stock and productivity gains, he added.

In this context, he lauded Government's policy to herald in a second Green Revolution to sustain high growth in GDP and generate more employment.

The country needs to diversify its agriculture, develop agro-based industries and improve rural infrastructure substantially, he added.

International Monetary Fund is also considering revising its figures, in line with Reserve Bank and other independent research agencies, which pegged India's GDP growth upwards at 6.5-7 per cent for 2003- 04.

PTI