Indian economy slows further in Q2

For the second quarter of the current fiscal year, GDP rate is recorded at 7.6 per cent. The low growth in the agriculture and manufacturing was the matter of concern. The GDP rate in the first quarter of this fiscal year was 7.9 per cent which was high in comparison with the current quarter figures. quarterly GDP growth was the lowest since the last quarter of 2004.

According to media reports the Finance Minister P Chidambaram described the growth rate as during the first half of 2008-09 as "healthy and satisfactory” in the worldwide context, where many economies are shrinking in a recession.

Compared with the year-ago period, the Indian economy seemed to be slowing as the growth was 9.3 per cent in the second quarter of the previous fiscal, but it was expected to moderate as a consequence of the global financial crisis and other domestic factors.