The Indian economy grew at a meager 7.7% in the first
(April-June) quarter of fiscal year 2012 as against of 8.8 per cent during
April-June 2010.
The lower growth rate is mainly due to a slowdown in
construction sector which saw an increase of just 1.2 per cent during
April-June 2011, compared with 7.7 per cent in the same quarter of last year.
Poor performance of the manufacturing sector, which grew
7.2% during the quarter versus 12.7% on year-on-year basis also contributed to
the slower growth rate. The Mining
and quarrying (1.8 per cent versus 7.4 per cent) sector also registered a slower
pace rate. But the deceleration in these sectors is not as worrying as it is in
construction 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 FY11.
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