Updated on
Summary The final quarter saw a contraction in the key manufacturing sector.
The Indian economy expanded by a much slower-than-expected 5.3 percent in the January-March quarter, official data showed Thursday, adding further pressure on the embattled government.For the full fiscal year to March 2012, the economy expanded 6.5 percent, -- lower than the governments estimate of 6.9 percent and far below the 8.4 percent of the previous year.The final quarter saw a contraction in the key manufacturing sector, where output shrank 0.3 percent, while farm, construction and mining production grew only modestly.Analysts had forecast growth of 6.1 percent in the quarter and the poor figures will increase the gloom shrouding Asias third-largest economy and likely deepen the falls of the rupee, which is at record lows against the dollar.
