India’s annual economic growth fell down to 7.1% in the July-September quarter of FY 2018-19, lowest in three quarters, according to government data released on Friday. The Indian economy, however, still remained ahead of China to retain the tag of the world's fastest-growing major economy.

The GDP at constant prices (2011-12) had grown at 6.3% in July-September quarter of the last fiscal.

The Gross Domestic Product (GDP) growth rate in the April-June quarter of 2018-19 was at 8.2% on strong performance of manufacturing and agriculture sectors. The GDP growth was 7.7% in January-March quarter of last fisacal while it was at 7% in October-December.

This comes ahead of 2019 Lok Sabha polls as Prime Minister Narendra Modi is looking for another term at the Centre. 

"GDP at Constant (2011-12) Prices in Q2 of 2018-19 is estimated at Rs 33.98 lakh crore, as against Rs 31.72lakh crore in Q2 of 2017-18, showing a growth rate of 7.1%," a government statement said. 

"The Economic Activities which registered growth of over 7% in Q2 of 2018-19 over Q2 of 2017-18 are ‘Manufacturing, ‘Electricity, Gas, Water Supply & Other Utility Services’‘Construction’ and ‘Public Administration, Defence and Other Services’," it added. 

According to the estimates of Gross Domestic Product(GDP), released by the Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation, "The growth in the ‘Agriculture, Forestry and Fishing’, ‘Mining and Quarrying’, ‘Trade, Hotels, Transport, Communication and Services related to Broadcasting’ and Financial, Real Estate and Professional Services is estimated to be 3.8%, (-) 2.4%, 6.8%, and 6.3% respectively during this period."

The Chinese economy had expanded at the rate of 6.5% in the July-September period this year.

India's GVA (gross value added) at Constant (2011-2012) Prices for second quarter this fiscal is estimated at Rs 31.40 lakh crore, as against Rs 29.38 lakh crore year ago, showing a growth rate of 6.9% over the corresponding quarter of previous year.

The CSO said that mining and quarrying output has declined by 2.4% in the quarter from a growth of 6.9% in year ago period.

However, the manufacturing activities expanded at the rate of 7.4% in the quarter under review up from 7.1% in the year ago quarter.

The construction sector too showed an improvement by recording a growth of 7.8% as against 3.1% earlier.

The farm sector too grew at a higher rate of 3.8% in the quarter as against 2.6% a year ago. 

The Reserve Bank of India has forecast economic growth of 7.4% for the financial year ending in March, recovering from 6.7% in the previous year, slowest in four years.

A Reuters poll of economists had estimated that India’s annual economic growth would be moderated to 7.4% in the July-September quarter.  

On Wednesday, the government revised growth estimates during UPA era. The new numbers, which have been calculated by changing base year to 2011-12 from 2005-06, show India's economic growth rate averaged 6.7% during the Congress-led UPA regime as compared to 7.3% under the present government. 

Previous numbers had put the average growth rate during the 10-year UPA rule at 7.75%.

(With PTI inputs)