GDP growth slows to 7.1% in Q1; July infra dips to 3.2%

New Delhi, Aug 31 (PTI) Showing signs of moderation,India’s economic growth rate slipped to 6-quarter low of 7.1per cent in April-June, while infrastructure sector outputdecelerated to 3.2 per cent in July. GDP growth slowed mainly due to subdued performance ofmining, construction and farm sectors. The economy hadexpanded at 7.5 per cent in the April-June quarter of lastfinancial year, 2015-16. The growth was 7.9 per cent in the January-March period –fourth quarter of last fiscal. The previous low of GDP growth was 6.6 per cent in theOctober-December period of the 2014-15 fiscal. Besides, the growth of eight core infrastructure sectorsslowed to 3.2 per cent in July compared to 5.2 per cent inJune this year due subdued performance of coal, fertilisers,steel, cement and electricity segments. Finance Ministry attributed the slowdown in GDP to highersubsidy outgo but exuded confidence that good monsoon andimpact of pay commission award will push the economic growthclose to 8 per cent this fiscal. "Given the good monsoon which we had this year, the 7thPay Commission payout effect and various structural reformmeasures which the government has taken we expect the growthto be higher than what we achieved last year (7.6 per cent),perhaps close to 8 per cent," Economic Affairs SecretaryShaktikanta Das told reporters. Industry body Assocham suggested that policy makers takesteps to free up the credit flow to productive sectors of theeconomy so that current growth is supported. According to the data released by the Central StatisticsOffice (CSO), the Gross Value Added (GVA), which is estimatedat the basic prices, showed a growth of 7.3 per cent in thefirst quarter of 2016-17. The economic activities which registered growth of over 7per cent in the April-June quarter, over year-ago period, aremanufacturing; electricity, gas, water supply & other utilityservices; trade, hotels, transport & communication andservices related to broadcasting; financial, insurance, realestate and professional services and public administration,defence and other services. Growth in agriculture; forestry and fishing; mining &quarrying and construction is estimated to be 1.8 per cent,(-)0.4 per cent, and 1.5 per cent respectively. MORE PTI NKDKKS CSSA