NEW DELHI, 8 February 2005 — India’s economy in fiscal 2004 is likely to grow 6.9 percent, down from the 8.5 percent growth recorded in 2003, due to lower farm output, a report said yesterday.

The government estimated that the farm sector, making up more than one-fifth of gross domestic product, would grow 1.1 percent in the financial year ending March 31 2005, while manufacturing would grow 8.9 percent, the Press Trust of India news agency reported.

The finance, real estate and insurance sectors were estimated to grow 7.1 percent, while community, social and personal services were expected to expand 6.0 percent, the report said, quoting the government.