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MUMBAI, Oct 7 (Reuters) - The impact of a drought on India's farm sector will not be as bad as had been expected, and the broader economy is seen growing at more than 7 percent in 2010/11, the deputy chairman of the Planning Commission said.
"Impact of drought is less negative than thought earlier," Montek Singh Ahluwalia told reporters on Wednesday.
He said the commission now expected a 1 percent decline in agriculture during 2009/10, smaller than an earlier forecast of a 2.5 percent decline.
The central bank expects the economy to grow at around 6 percent this year, slowing from 6.7 percent in 2008/09. (Reporting by Jeanette Rodrigues; Editing by John Mair)