The Centre for Monitoring Indian Economy on Thursday revised growth forecast for the country's economic growth upwards to 6.2 per cent in 2004-05 as against earlier estimate of six per cent.
In August, CMIE had lowered economic growth estimate for FY-05 to six per cent from the earlier forecast of 6.3 per cent due to prospects of slowdown in farm sector.
"The domestic demand is expected to be the primary source of growth. The industrial sector is projected to grow at 6.8 per cent in the current fiscal as against 6.7 per cent in 2003-04," CMIE said in its monthly economic review released in Mumbai.
Good rabbi season in 2004 and healthy growth in services sector spurred the demand for industrial goods in the first quarter of 2004-05, it added.
The economy grew by a healthy 7.4 per cent in April-June 2004 quarter as compared with 5.3 per cent in the same period a year ago, it said.
CMIE said the agriculture and allied sector would grow by one per cent only due to erratic and poor distribution of south-west rains.
The services would grow by eight per cent in 2004-05, lower than 8.7 per cent growth recorded in 2003-04, it said.
The growth in services sector and implementation of investment projects that were announced in 2003-04 would help in maintaining the growth in domestic demand, the economic think-tank added.