NEW DELHI, INDIA: The Indian economy grew at a faster rate of 8.8 per cent in the first quarter of current fiscal as strong domestic demand resulted in a spurt of manufacturing activity, official data released on Tuesday showed.

The country's gross domestic product (GDP) had risen 6 percent in the year-ago period.

During the three months under review, the manufacturing sector grew 12.4 per cent, trade, hotels, transport and communication activities rose 12.2 per cent, mining and quarrying 8.9 per cent, according to a statement by the Central Statistics Office.

Agriculture, forestry and fishing grew 2.8 per cent over the previous comparable quarter.

The government has predicted the economy to expand 8.5 percent in the current fiscal, faster than an annual growth of 7.4 per cent in 2009-10.