Despite rupee appreciation and monetary tightening, the economy grew at 9.3% in the first quarter of the current financial year when compared with 9.6% in the first quarter of the previous fiscal.Though the manufacturing sector growth slowed down a bit to 11.9% from 12. 3%, construction and financial sector growth increased to 10.7% and 11%, respectively, from 10.5% and 10.8% in Q1FY07.The other two sectors that performed very well are agriculture (3.8% as against 2.8% in Q1FY07) and electricity (8.3% vs 5.8%). The quarterly gross domestic product (GDP) at factor cost at constant (1999-2000) prices for Q1 of 2007-08 is estimated at Rs 7,23,132 crore as against Rs 6,61,335 crore in Q1 of 2006-07 - a growth of 9.3% over the corresponding quarter of the previous year. GDP at factor cost at current prices moved up 15% to Rs 9,78,760 crore from Rs 8,50.797 in Q1FY07.Analysts said they are surprised at the higher-than-expected growth in financial services. Some experts feel the Reserve Bank of India will now be more cautious with the high rate of economic growth.CLICK HERE TO READ GOVT REPORT
