GDP grew by 8.4%, a decline from 8.9% in the previous quarter (2QFY08) and 9.2% same quarter last year (3QFY07). Non-agricultural GDP growth decelerated to 9.8% from 9.9% last quarter and six consecutive quarters of double digit growth before that. As compared to 2QFY08, growth deceleration is most marked for mining, electricity and construction.
Coinciding with the growth deceleration, there has been significant spurt in WPI inflation which has increased by ~200 bps since October 2007. This would make it difficult for RBI to go for an early cut in policy rate.