Tech & Biz

India growth slows to 7.9%, from 8.8% in Q4

by Sanjay Jha | August 29, 2008 at 01:38 am

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Growth story in India seems to be fading away. Latest growth figure released today said that there has been reduction in the growth rate to 7.9 per cent in the first quarter. However this slowdown figure has not come unexpected as manufacturing sector which consitute an important role in the GDP data has already slowed down considerably over the last one year. Despite slow down with 8% GDP growth Indian economy is the fastest growing economy in the world. Government need initiate slew of measures to give a push to the economy. Inflation figure have started to cool down and come down further in the coming time.

Indian government will need to work on interest rate regime, schemes to encourage fresh invesments. Lately to curb inflation Indian government has raised the interest rates and the higher interest rate has dampened the enthusiasm of the private sector to commit fresh investments.

India's gross domestic product grew at 7.9% in the April-June period from the year-earlier quarter, according to official data released Friday. Economists had expected GDP to grow 8.1% during the quarter. The weaker-than-expected expansion represents a marked slowdown from the 8.8% growth recorded in the previous quarter, and 9.2% expansion in the year-earlier quarter. The construction grew the fastest, at 11.4% from the year-ago, while growth in utilities grew the slowest, at 2.6%

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