India’s growth slips to 6.9-pct in 2Q

NEW DELHI, Dec 2 (AsiaPulse) - Confirming a slowdown, India's economic growth rate slipped to 6.9 per cent in the second quarter this fiscal year, the lowest in nine quarters, prompting the government to lower its full-year growth projection to 7.3 per cent. Economic growth during the July-September period of 2011-12 fell mainly due to poor manufacturing performance and declining output of the mining industry. Agriculture growth, too, showed moderation during the period.

"Taking into account the trend of the last two quarters, I expect the GDP growth to be 7.3 per cent (in 2011-12)," Finance Minister Pranab Mukherjee told reporters.

The economy grew by 8.5 per cent last financial year.

On the back of the tight monetary policy followed by the Reserve Bank to tame inflation, the growth rate in the manufacturing sector nosedived to 2.7 per cent in the July-September quarter from 7.8 per cent in the corresponding quarter of the previous fiscal year.

Mining and quarrying sector output declined by 2.

9 per cent, compared to a growth of 8 per cent in the second quarter of 2010-11. Agriculture production slipped to 3.2 per cent from 5.4 per cent in the corresponding period last fiscal year.

GDP growth in the second quarter last fis