GDP growth slows to 7.7 pc in April-June qtr of 2011-12

New Delhi, Aug 30 (PTI) Confirming fears of a slowdown,
India's economy grew by just 7.7 per cent in the first quarter
of the 2011-12 financial year, compared to 8.8 per cent 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 per cent, while the Reserve
Bank has projected the growth to moderate to 8 per cent from
8.5 per cent in FY'11.
In the latest data released by the government on Tuesday,
GDP growth for the April-June quarter of the 2010-11 fiscal
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, 2011, growth in the
manufacturing sector dipped to 7.2 per cent from 10.6 per cent
in the corresponding period of 2010-11.
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 fiscal.
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 fiscal.
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.
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 financial year. The Indian economy
expanded by 8.5 per cent in the 2010-11 fiscal.