Gross domestic product or GDP rose 4.8 per cent in July-September compared with 4.4 per cent in the previous quarter, according to an official statement here.
The July-September period was the fourth successive quarter of economic growth below 5 per cent and compared with 5.2 per cent expansion in the same period last year.
While Finance Minister P Chidambaram exuded confidence that the growth rate will rise to 6 per cent next fiscal, Economic Affairs Secretary Arvind Mayaram said the third and fourth quarters will see a pick up to help attain at least 5 per cent growth for the fiscal.
Stating that there were "no quick fixes" for taming prices, Chidambaram said inflation has got entrenched and monetary policy has little impact on it.
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While the Finance Minister has said the "red lines" on fiscal deficit will not be breached, the difference between government receipts and spending touched Rs 4.57 lakh crore, or 84.4 per cent of the budget estimate, in the first seven months of the current fiscal.
Recovery in Asia's third-largest economy has been wobbly as the RBI raised interest rates to curb inflation. There are expectations of another hike at the central bank's next review due on December 18.
Blaming the growth slowdown on global factors, Prime Minister's Economic Advisory Council Chairman C Rangarajan said, "I am optimistic that the second half will be spurred along by increased manufacturing, leading to a more stable rupee.