India's economic growth has fallen further to 7.6 per cent for the second quarter of this fiscal, as per official statistics on the country's gross domestic product (GDP) released in New Delhi on Friday.
The country's growth was 7.9 per cent during the first quarter of the fiscal (April-June) and 9.2 per cent during the second quarter of 2007-08 (July-September), according to the Central Statistical Organisation (CSO) data.
Prime Minister Manmohan Singh, Finance Minister P Chidambaram and Reserve Bank of India (RBI) Governor D Subbarao have projected the Indian economy to expand by 7-8 per cent during the current fiscal year ending March 31, 2009.
The main reason for the fall in the overall economic expansion during the period under review (July-September, 2008) was a low, 5 per cent growth in the manufacturing sector, as opposed to 9.2 per cent in the like period of last fiscal.
Similarly, agriculture also logged a significantly lower growth of 2.7 per cent, as opposed to 4.7 per cent, while hospitality, transport and communications expanded the best 10.8 per cent against 11 per cent during the second quarter of fiscal 2007-08.
What has, however, come as a surprise was the 9.7 per cent growth ion construction, as opposed to 11.8 per cent in the corresponding period of the previous year.
Similarly, financial services, realty and business services also registered a notable growth of 9.2 per cent, against 12.4 per cent, given the circumstances where real estate companies have been complaining about a major slowdown.