The government’s advance estimate is a shade lower than the central bank’s January projection of 7 per cent. According to the Central Statistical Organisation, agricultural growth is estimated to be 2.5 per cent against 7 per cent in 2010-11. Growth in mining and quarrying is estimated to decelerate 2.2 per cent and the manufacturing sector is likely to grow at 3.9 per cent as against 7.6 per cent last year.

Finance Minister Pranab Mukherjee called the estimates “disappointing”, but added: “I anticipate an upward revision when the full data for 2011-12 becomes available.”

“The growth rate could be around 7.1-7.2 per cent with manufacturing doing better,” added C Rangarajan, chairman of the Prime Minister’s Economic Advisory Council.

The slowing economy, however, doesn’t augur well for the fiscal consolidation drive. The fiscal deficit for the year is likely to settle at around 5-5.5 per cent of the GDP, more than the budgeted 4.6 per cent.