The latest data from the Central Statistics Office reveals that the Indian economy grew 5.5% in the first quarter (Q1) of the 2012-13 fiscal, comparatively 0.2% higher than the 5.3% growth in the January to March quarter, Q4 of the 2011-12 fiscal.
However, the GDP growth in the same period in the last financial year, Q1 of 2011-12 was at 8%. The farm sector grew 2.9% in Q1 of 2012-13 fiscal, as compared to 3.7% in the same period in the last fiscal.
Manufacturing sector reported a minuscule 0.2% growth, compared to the robust 7.3% growth in the same period in 2011-12 fiscal.
The economists have attributed various factors, such as high interest rates, slow industrial growth, policy paralysis at the Centre leading to stalled economic reforms, the state of the global economy, and the resultant gloomy business confidence, as the reasons that are impacting economic growth in the country.