The finance ministry said Friday said that the second quarter gross domestic growth (GDP) data was on expected lines.
"The ministry observes that the growth in the second quarter has been broadly on the expected lines. A lower growth in industry sector vis-à-vis the first quarter is not surprising," the ministry was quoted in a statement adding that a sluggish monsoon to played a part in restricting agricultural growth.
As per Central Statistics Office (CSO) data released Friday, the Indian economy logged 5.3 percent growth in the second quarter of this fiscal, against 5.7 percent in the first quarter.
Even though the 5.3-percent growth came as a pleasant surprise to many who were anticipating a slightly lower rate of expansion, the manufacturing growth of a mere 0.1 percent was a big dampener.
According to the ministry, all sectors showed sluggish expansion but for the services sector.
The sector's improved pace of economic acceleration was cited by the ministry as a result of growth in trade, hotels, transport, communication, community, social and personal services.
According to the Finance Ministry, weak monsoon and subdued manufacturing lead to the industry expansion in the second quarter which was lower than what was observed in the first quarter.
