Growth in agriculture sector was projected to increase from 1.3 per cent during last year to 4.5 per cent in the current fiscal, while industry and service sectors would continue to maintain their healthy growth of 1999-2000, CMIE said in its latest issue of `The monthly review of the Indian economy'.

The fiscal 1999-2000 itself turned out to be much better than the projected 5.7 per cent growth in GDP, it said adding industrial sector, in particular, recorded an impressive recovery by posting 7.8 per cent rise in the current year as against four per cent growth achieved last year.

Services sector continued to post a healthy growth rate by clocking a growth of 8.6 per cent, it said. Index of Industrial Production (IIP) had already recorded a handsome growth of 12 per cent in April, it added.

Exports impressed with 30 per cent growth during the two months of the current fiscal, while custom based exports were projected to record a 13 per cent growth, CMIE said.

Imports would grow by 10 per cent in 2000-01 and the current account deficit was projected to remain around one per cent of the GDP, it added.

Inflation was already showing signs of rising, with the wholesale price index (WPI) growing by 6.4 per cent during April-May 2000, CMIE said adding, this was mainly due to 27 per cent rise in fuel prices. Primary articles' prices have also been looking up while prices of manufactured goods have remained relatively stable, it said.

For the current fiscal as a whole, the WPI was projected to register a seven per cent increase, while Consumer Price Index (CPI) would be higher by six per cent, it added.

CMIE also predicted that outlook for investments was not very bright and new investments in the manufacturing sector was particularly weak.