Monday, July 25 2005 20:15 Hrs (IST) - World Time -

Mumbai: Reserve Bank of India (RBI) today (July 25, 2005) said positive developments in agriculture, industry and services sector coupled with the upbeat business confidence has imparted a degree of optimism about growth prospects in the first quarter ended June 30 of 2005-06.

The real activity originating in agriculture and allied activities in Q1 was expected to receive boost from the improvement in Rabi production in the previous fiscal.

The rainfall recorded in the June one to July 13, 2005 was one percent above normal as against 10 per cent below normal a year ago, RBI said in its quarterly review of macroeconomic and monetary developments released here.

The industrial production was buoyant and broad-based in April-May with growth accelerating in the manufacturing sector, RBI said.

The lead indicators point to robust services sector performance in the first quarter.

The various forecasts place the overall economic growth in the range of 6-7.2 per cent in 2005-06.