India’s GDP grew slowest in the last six quarters at 7.7 per cent during the first quarter (Q1) of this fiscal — April-June 2011 — as high interest rates hit businesses.
This is the third straight quarter that growth has slowed down.
It has raised questionmarks on whether India will be able to clock eight per cent growth this fiscal.
This growth would in fact have been lower, at 7.2 per cent, had the government not revised gross domestic product growth downward for the first quarter of the last fiscal, according to Ficci.
GDP growth for the first quarter of the last fiscal was downgraded from 9.3 per cent to 8.8 per cent.
Finance minister Pranab Mukherjee was disappointed at the slow growth.
“It’s no doubt disappointing. There’s no room for complacency. We’ll have to work very hard,” said Mr Mukherjee.
The finance minister hoped GDP growth would recover by the end of the fiscal, but refused to project any figure.
The GDP had grown by 8.5 per cent in 2010-11.