LD GDP TWO LST

The growth is in line with the RBI and the government's
expectations, which peg it to six per cent with an upward
bias.

"I am glad that worst may be over and we expect to see
improved performance in subsequent quarters. It (GDP
numbers) is very good, it is consistent with what we were
hoping for," Planning Commission Deputy Chairman Montek Singh
Ahluwalia told reporters here.

With encouraging June quarter rates, the Government
expects the economy to grow at 6.5 per cent this fiscal.

"We expect the (GDP) growth rate to be 6.5 per cent or
above. Growth in the economy was very encouraging and it is
expected to improve further going forward," Finance Secretary
Ashok Chawla told reporters in Mumbai.

Electricity generation and mining output were the best
performers as they grew by 6.2 per cent and 7.9 per cent in
the first quarter of this fiscal against 2.7 per cent and 4.6
per cent a year ago, respectively.

Financing, insurance, real estate and business services
also expanded by 8.1 per cent against 6.9 per cent.
Construction was slightly down to 7.1 per cent from 8.4 per
cent and community services by 6.8 per cent from 8.2 per cent.

But the government's optimism is not shared by everyone.

HDFC Bank Chief Economist Abheek Barua said,"We are
expecting 5.8 per cent for the entire fiscal, which means that
growth in second and third quarters should come down." PTI