Indian economy, which is 75 per cent dependent on agricultural output is seen to grow at the rate of 6.5 per cent in 2003-04 on the back of normal monsoon rains.

According to the Centre For Monitoring Indian Economy, even though the rains were delayed by a week this year resulting in sluggish growth in sowing activities in June, the farm sector is likely to see a 7.5 per cent growth.

While the Index of Industrial Production was expected to grow at 4.5 per cent, the industrial sector as a whole including construction was projected to grow by five per cent, the economic think-tank said in its July economic review released in Mumbai on Friday.

"This growth would be somewhat lower than the 5.8 per cent growth recorded in 2002-03," it added.

CMIE said the services sector was expected to maintain its seven per cent growth rate in 2003-04.

The exports are projected to grow at nine per cent for the year ended March 2004 while the imports would grow at a lower rate of 4.5 per cent in the same period.