New Delhi, Sep 13 (IANS): Prime Minister Manmohan Singh's economic advisory panel Friday sharply lowered its forecast for India's economic growth in the current financial year to 5.3 percent from its earlier projection of 6.4 percent.

Chairman of the Prime Minister's Economic Advisory Council C. Rangarajan said the country's gross domestic product (GDP) is estimated to expand by 5.3 percent in 2013-14.

In its review announced in April, the panel pegged the growth at 6.4 percent.

The economy expanded by 5 percent in the financial year ended March 31, 2013.

Addressing a media conference here, Rangarajan said farm sector growth is estimated to jump to 4.8 percent in the current financial year as compared to 1.9 percent in the previous year.

“The early and good monsoon had a huge positive impact on sowing activity. The reservoir position in the week ending Aug 29, 2013, was 29 percent better than the average of the last 10 years. Thus, both kharif and rabi crops are expected to be good,” he said.

Industry, that includes manufacturing, mining and quarrying, electricity, gas, water supply and construction, is projected to grow at 2.7 percent in 2013-14, slightly better than the last year's growth of 2.1 percent.

Manufacturing sector is projected to grow at 1.5 percent in the current financial year as compared to one percent growth registered in 2012-13.

However, the growth of services sector, that account for more than half of the economy, is projected to decline to 6.6 percent in 2013-14 as against 7.1 percent growth registered in 2012-13.