NEW DELHI, Feb 29: India’s economy grew by 8.4 per cent in the third quarter, its slowest pace in two years, on lower farm and industrial output from the same period a year ago, official data showed on Friday.

The data showed that the economy expanded almost in line with a forecast of 8.7 per cent for the year ending March. But the pace is well off the 9.6 per cent growth reported in the previous year.The slowdown for the quarter ended December has been attributed to aggressive monetary tightening to tame prices and a 12 per cent gain for the rupee against the dollar in the past year.

The rupee’s rise has dented export earnings for Asia’s third biggest economy.

Farm growth rose 3.2 per cent in the third quarter, down from 3.4 per cent a year earlier, while manufacturing gained 9.3 per cent from 11.3 per cent.—AFP