India's GDP grew at a slow 7.7 per cent in fiscal first quarter

India's economy grew at a slow pace of 7.7 per cent year-on-year in the first quarter of the current financial year (April-June 2011-12), against an 8.8 per cent growth recorded in the similar quarter of the previous year.

The slow pace of economic expansion has been due mainly to a slowdown in construction activity. The key indicators of construction sector, namely, production of cement declined by 0.9 per cent while consumption of finished steel grew at a slow 1.5 per cent during the first quarter of 2011-12.

The country's gross domestic product at factor cost at constant (2004-2005) prices stood at Rs12,26,339 crore, as against  Rs11,38,286 crore in the similar quarter of the previous fiscal (2010-11), figures released by the Central Statistical Organisation (CSO) showed.

The quarterly estimates of GDP are based on the new series of index of industrial production (IIP) with base 2004-05. The new series of IIP is more representative as the basket comprises 682 individual items having weightages that reflect the present structure and composition of the industry due to changes in the technology, economic reforms and production behaviour over time.

The economic activities which registered significant growth in the first quarter of 2011-12 include electricity, gas and water supply (7.9 per cent), trade, hotels, transport and communication (12.8 per cent), financing, insurance, real estate and business services (9.1 per cent).

Manufacturing sector grew at an estimated 7.2 per cent during the quarter while community, social and personal services grew at 5.6 per cent, agriculture, forestry and fishing at 3.9 per cent, 'mining and quarrying at 1.8 per cent and construction at 1.2 per cent during the quarter.