Mumbai: The gross domestic product (GDP) growth for the year 2003-04 is expected to significantly exceed the earlier projection of 6 per cent made in the April credit policy, said the Reserve Bank of India (RBI) in its annual report for 2002-03.

"As per the latest assessment of rainfall conditions, a strong recovery in agricultural output is likely during the year. This along with the continuance of the upturn in the industrial and the services sectors, the expected growth for 2003-04 may significantly exceed the earlier projection, if output growth in agriculture shows a sizeable increase over the low base of 2003-03," adds the report.

It further says: "The momentum of industrial growth has been sustained with manufacturing output rising strongly in the first quarter. The outlook for the industrial sector is expected to be reinforced by the renewal of agriculture activity, the strength of exports and the improved environment for new investments."