Economic growth slows to 7% in June quarter

India's economic growth slowed to 7 per cent in the three months through June from 7.5 per cent in the previous quarter, government data showed on Monday.

Analysts polled by Reuters had forecast annual growth of 7.4 per cent in the quarter.

The growth is slightly higher than 6.7 per cent in the first quarter of the previous financial year.

As per official data on gross domestic product (GDP) released by the Ministry of Statistics and Programme Implementation, the growth of 7 per cent was led mainly by a 12.8 per cent expansion in commercial services, 8.9 per cent in financial services and 7.2 per cent in manufacturing output.

The farm sector expanded by 1.9 per cent, below the overall growth rate, and so did the mining industry (by 4 percent), energy by (3.2 per cent) and construction (by 6.9 per cent), and social and defence services (by 2.7 per cent).