During the quarter ended June on the back of robust manufacturing growth, economy grew by an impressive 8.8 percent. There are certain sectors like financial services which had restrained the overall growth in an economy.

In April June 2009-10 the growth rate of 6 per cent have been noticed in it. In the year ago period Agriculture and allied activities grew by 2.8 percent, higher than 1.9 percent.

In the medium term it is no where between the targets of 4 percent pegged by the government.

In April-June, 2010 against a mere 3.8 percent growth rate in the same period last year manufacturing expanded by strong 12.4 percent. Compared to 4.6 percent construction too grew by 7.5 percent.

Among services community social and personal services growth slowed down to 6.7 percent, against 7.6 percent a year ago, while financial insurance estate services expanded by just 8 percent, against a growth rate of 11.8 percent in the year ago quarter.

However, against 5.5 percent during April-June 2009, the trade, hotel and communication services rose by 12.2 percent.

In this fiscal the government expects economy to grow by 8.5 percent. Though in the previous quarter the GDP numbers for the April-June quarter are higher than that of 8.6 per cent, by various experts they lag expectations of 8.9-9.4 percent forecast.