While the world is moving towards another set of slowdown, the Indian economy has shown re silence. The Indian economy grew by 8.8 per cent during the first quarter of this fiscal backed by strong domestic demand.

This has resulted in the increase in manufacturing activities, suggests official data. The gross domestic product (GDP) has gone up by 8.6 per cent as compared to the same period last year. Last year it went up by 6 per cent.

During the period under review the manufacturing went up by 12.4 per cent. Trade, hotels, transport and communication activities alone went up by 12.2 per cent while the mining and quarrying rose by 8.9 percent.

Data also showed that agriculture also performed well and it went up by 2.8 per cent as compared to previous period.

During April-June period, the private consumption was around Rs.996,630 crore which is higher than Rs.788,013 crore in the first quarter of 2009-10 at current prices.

Economists believe that some softening in growth rate has happened because of higher base rate and because of lagged interest rates.

WPI during the period was at 10.6 per cent.