Bangalore, Aug 21 - India Inc Friday hoped the economy would grow close to 6-7 percent this fiscal despite drought in many parts of the country.

'The economic growth may take a marginal hit of 0.5-1 percent due to drought in large parts of central and northern India, which has come after seven years of good rains,' Confederation of Indian Industry (CII) president Venu Srinivasan told reporters here.

Admitting that rural demand would take a hit, he said the economy would, however, continue to grow as most sectors, including manufacturing, would do better.

'We still expect close to 6-7 percent GDP (gross domestic product) growth. If rural growth had sustained us last year, urban growth will come back this year to enable the economy grow,' Srinivasan said on the margins of a CII event.

He further said the industry and the government would have to look after millions of people who would not have drinking water and face crop failure this year.

'I think the first role that both the industry and the government will have to play is to look after the plight of millions of these people,' he said.