India's economy grew a disappointing 5.5% in the last quarter ending June, marking a sharp slowdown from the 8% growth in the same period a year ago.
The economy grew only 5.3% in the quarter before, signalling a sharp downturn from previously robust growth.
Economists say the dismal performance of the economy reflects the government's disarray and inability to push through crucial economic reforms.
The economic figures for the April-June quarter released by the Indian government showed that industrial and investment activity had failed to pick up pace while the services sector has marginally weakened.
Agriculture grew 2.9% compared to 3.7% a year ago, while the services sector declined to 6.9% compared to 10.2%.
The only bright notes in the gloomy quarterly figures were in the construction sector, which showed a robust 10.9% growth; and financing, insurance, real estate and business service activities, which expanded by 10.8%.
With a political impasse in India's Parliament holding up all government decision-making, and the central bank refusing to reduce interest rates, companies have shied away from investments.
C. Rangarajan, who heads the prime minister's Economic Advisory Council, said the 5.5% figure was "consistent with the 6.7% growth we had projected."
Industry leaders and economic analysts said the figures were disappointing and reflected the deceleration on manufacturing and services.
