Growth slows to 7.7%, govt 'disappointed'

India's economy grew by 7.7% during April to June, the slowest in 18 months, mirroring signs of a slowdown as rising input costs and costlier borrowing squeeze corporate expansions. HT reports.

India's economy grew by 7.7% during April to June, the slowest in 18 months, mirroring signs of a slowdown as rising input costs and costlier borrowing squeeze corporate expansions.

The gross domestic product growth data released Tuesday showed that the manufacturing sector grew at a slower 7.2% during the quarter from 10.6% in the same period of the previous year.

The government termed the growth figures as disappointing. "It is no doubt disappointing," finance minister Pranab Mukherjee said.

The RBI, which will present mid-quarter monetary policy review in September, has raised interest rates 11 times in 16 months to cool prices. Slower growth could imply fewer job opportunities and lower hikes as corporates, squeezed in by lower sales, put off investments.