NEW DELHI, April 21: India’s central bank governor Bimal Jalan said on Monday the economy was likely to grow 6.0 per cent in the current financial year on the back of higher farm sector output.

Based on the monsoon forecast of 96 per cent of average rains, I expect a growth of about 6.0 per cent, Jalan told reporters.

The Indian economy, Asia’s third largest, grew a meagre 4.4 per cent in 2002/03 (April-March) following the country’s worst drought in 15 years.

India’s weather office has predicted the June-September monsoon rains to be 96 per cent of the average in the current year. Monsoon rains are vital for India’s farm sector which accounts for a quarter of its GDP.

The farm sector provides income to about 70 per cent of the country’s billion plus population and is heavily dependent on rains in the absence of irrigation facilities.

Jalan said the weather office’s monsoon prediction was enough to jumpstart the farm sector and output would grow between 4.0-4.5 per cent in the current financial year.—Reuters