Under pressure

Risks to growth have increased

The estimates of gross domestic product (GDP) for the first quarter this financial year, released by the National Statistical Office on Thursday, would not please most analysts. Growth for the quarter, at 7.8 per cent, was lower than the rate projected by the Reserve Bank of India (RBI) at 8 per cent. Some private-sector economists were expecting growth above 8 per cent. In terms of sectoral performance, the agriculture sector grew 3.5 per cent year-on-year (Y-o-Y), though sustaining growth would be difficult, given the prospects of deficient rainfall. The manufacturing sector expanded 4.7 per cent Y-o-Y, which was disappointing. Financial,