NCAER said that projected GDP growth for 2003-04 was based on the assumption that agriculture output will grow by 10.7 per cent as opposed to the earlier projection of 7 per cent.
That apart, according to NCAER, the increase in government consumption by 9 per cent, investment by 10 per cent will push the GDP growth. Indirect domestic tax rates have also increased by 2 per cent.
Meanwhile, the report has highlighted that the financial performance of the private corporate sector has shown substantial improvement in terms of sales and profitability. The easing of some constraints in terms of cost and availability of credit, procedural bottlenecks, availability of power and road and port facilities have positively impacted the industrial outlook.
The report also projected that the world economy is on a recovery path. It highlighted that the Organisation of Economic Co-operation and Development (OECD) had stated that the strong momentum already achieved in Asia, North America and the UK provided evidence of the renewed strength of the world economy.