Confirming fears of a slowdown, India's
economy grew just 7.7 per cent in the first quarter of the 2011-12, compared to 8.8 per cent growth in the same three-month period last financial year, which was mainly due to the poor performance of the manufacturing sector.
The government has projected overall economic growth in the current financial year at 8.5 per cent, while the Reserve Bank has projected the growth to moderate to 8 per cent from 8.5 per cent in FY11.
PM panel sticks to growth forecast despite US recession troubles In the latest data released by the government on Tuesday, GDP growth for the April-June quarter of 2010-11 has also been
revised downward to 8.8 per cent from the earlier provisional estimate of 9.3 per cent.
During the quarter ending June 30, growth in the manufacturing sector dipped to 7.2 per cent from 10.6 per cent in the corresponding period of 2010-11.
FULL COVERAGE: Is US heading towards another recession? In addition, the mining and quarrying sector grew by just 1.8 per cent during the quarter under review, as against 7.4 per cent growth in the first quarter of the previous financial year.
However, farm output showed an improvement, expanding by 3.9 per cent during the quarter under review, compared to 2.4 per cent in the corresponding three-month period last year.
Furthermore, the trade, hotels, transport and
communications segments grew by 12.8 per cent in the quarter under review, up from 12.1 per cent in the year-ago period.
FDI likely to cross $35 billion in 2011-12 The services sector, including insurance and real estate, grew by 9.1 per cent in the June quarter this year, compared to 9.8 per cent expansion in the corresponding period last year.
The Planning Commission has estimated GDP growth at 8-8.3 per cent in the 2011-12. The Indian economy expanded by 8.5 per cent in the 2010-11.
Special 
