New Delhi, Aug 30 (IANS) Despite a relatively higher growth of 3.9 percent in farm output, the Indian economy grew at a lower rate of 7.7 percent in the first quarter of this fiscal, against 8.8 percent in the like period of last fiscal.

Fresh data on the estimates of national income released Tuesday showed that the lower growth rate was mainly on account of a comparatively lower expansion in manufacturing output of 7.2 percent, against 10.6 percent in the corresponding period of 2010-11.

The fresh data released by the Central Statistical Organisation (CSO) on India's gross domestic product (GDP) presented a mixed bag for the Indian economy, that had grown by 8.5 percent in 2010-11 and 8 percent in the year before.

There was a sharp fall in the growth of construction and mining sectors, at 1.2 percent and 1.8 percent in the quarter ended June, from 7.7 percent and 7.4 percent, even as the growth in services such as transport and trade was higher at 12.8 percent.

While agriculture grew at 3.9 percent, against 2.4 percent, electricity and gas expanded by 7.9 percent, against 5.5 percent, while financial services grew by 9.1 percent, as against 9.8 percent.