Confirming fears of a slowdown, India's economy grew by just
7.7% in the first quarter of the 2011-12 financial year, compared to 8.8%
growth in the same three-month period last fiscal, which was mainly due to the
poor performance of the manufacturing sector.
The government has projected overall economic growth in the
current fiscal at around 8.5%, while the Reserve Bank has projected the growth
to moderate to 8% from 8.5% in FY'11.
In the latest data released by
the government, GDP growth for the April-June quarter of the 2010-11
fiscal has also been revised downward to 8.8% from the earlier provisional
estimate of 9.3%.
During the quarter ending June
30, 2011, growth in the manufacturing sector dipped to 7.2% from 10.6% in the
corresponding period of 2010-11.
In addition, the mining and
quarrying sector grew by just 1.8% during the quarter under review, as against
7.4% growth in the first quarter of the previous fiscal.
However, farm output showed an
improvement, expanding by 3.9% during the quarter under review, compared to
2.4% in the corresponding three-month period last fiscal.
Furthermore, the trade, hotels,
transport and communications segments grew by 12.8% in the quarter under
review, up from 12.1% in the year-ago period.
The services sector, including
insurance and real estate, grew by 9.1% in the June quarter this year, compared
to 9.8% expansion in the corresponding period last year.
The Indian economy expanded by
8.5% in the 2010-11 fiscal.
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