New Delhi, August 31 : India’s economic growth has turn a sharp downward turn in the June quarter. Figures released by the Statistics Office on Wednesday showed that India’s GDP grew by 7.1 percent in the June quarter. The figure however is the weakest in the past five quarters and down from the earlier figure of 7.9 percent in the preceding three months.The good news is that India retains the title of the fastest growing economy, outpacing China. Also Read - RBI Governor Shaktikanta Das Tests Positive For Coronavirus

Speaking on the issue, the Economic Affairs Secretary , Shaktikanta Das has said, “ The Indian economy April-June quarter GDP growth is at 7.1%, which is lower than before.” Shaktikanta Das said. Das however clarified that the reason behind the new low was because of having to spend more on subsidies along with a lower collection of indirect taxes. Das clarified, “Main reason is on account of higher subsidy expenditure, the net indirect taxes have gone down.This year from Q1 itself we started releasing subsidy allocation to food, petrol and fertiliser side.” (ALSO READ : Barack Obama to focus on climate, economy on final Asia trip ) Also Read - India at Doorstep of Economic Revival, Says RBI Governor

However the economic Affairs Secretary seemed to have a positive outlook for the rest of the year. The secretary  expects that for the remaining part of the year the growth wil be closer to 8 percent. Das attributes this expected hike in growth to increasing manufacturing and exports along with a good monsoon season . Shaktikanta das said, ” There are three positives -exports are +3.2%; manufacturing is 9.1% & services sector growth is higher than last year.Given good monsoon & 7th commission pay out, going forward one would expect growth this year to be higher than last year.Our expectation is that growth this year should be closer to 8%.” Also Read - Even Pakistan, Afghanistan Handled Covid-19 Better: Rahul Gandhi Takes a Dig at Govt Over IMF Projections