India's economy grew by just 7.7 per cent in the first quarter of the 2011-12 financial year, compared to 8.8 per cent growth in the same three-month period last fiscal. In the latest data released by the government today, GDP growth for the April-June quarter of the 2010-11 fiscal has also been revised downward to 8.8 per cent from the earlier provisional estimate of 9.3 per cent.The government has projected overall economic growth in the current fiscal at around 8.5 per cent, while the Reserve Bank has projected the growth to moderate to 8 per cent from 8.5 per cent in financial year,2011.During the quarter ending June 30, 2011, growth in the manufacturing sector dipped to 7.2 per cent from 10.6 per cent in the corresponding period of 2010-11.In addition, the mining and quarrying sector grew by just 1.8 per cent during the quarter under review, as against 7.4 per cent growth in the first quarter of the previous fiscal.However, farm output showed an improvement, expanding by 3.9 per cent during the quarter under review, compared to 2.4 per cent in the corresponding three-month period last fiscal.Furthermore, the trade, hotels, transport and communications segments grew by 12.8 per cent in the quarter under review, up from 12.1 per cent in the year-ago period.The services sector, including insurance and real estate, grew by 9.1 per cent in the June quarter this year, compared to 9.8 per cent expansion in the corresponding period last year.The Planning Commission has estimated GDP growth at 8-8.3 per cent in the 2011-12 financial year. The Indian economy expanded by 8.5 per cent in the 2010-11 fiscal.India's economy grows by 7.7 per cent in first quarter of 2011-12The government today expressed disappointment over the slowdown in the country's GDP growth rate. Speaking to reporters, Finance minister Pranab Mukherjee said hard work is needed by all sections, including industry and farmers, to ensure inclusive growth, keeping in mind uncertainty over the global economy and monsoon. He said there was no room for complacency and everyone, including the government, industry and farming community, will have to work hard. The minister said, there is no room for complacency. Mr Mukherjee expressed confidence that workers and farmers would make their contribution in ensuring growth with inclusion. He said there was a silver lining to the country's economic performance, as 27.7 million jobs were created between 2005 and 2010. Mr Mukherjee said increase in overall investments is encouraging as there was 7.9 per cent year-on-year increase during the first quarter of this fiscal, compared to a 0.4 per cent rise in the corresponding year-ago period. The Finance minister said he was expecting a higher growth rate in the first quarter. He, however, said given various factors including the overall international scenario and the muted recovery in Europe and the US, the situation in country is not that much disappointing. He hoped that the GDP growth rate would recover by the end of the fiscal, but refused to project any figure.