D Subbarao, the Governor of the Reserve Bank of India ha said that a growth rate of below 7 per cent is the new normal for the Indian economy.

According to the latest official data released, the Indian economy grew 6.1 per cent in the third quarter of the current financial year compared to a growth rate of 6.9 per cent growth recorded in the second quarter.

The Prime Minister's Economic Advisory Council expects the Indian economy to grow at 7.1 per cent in the financial year till March 2012. On the other hand, Central Statistics Office estimates show that the country's economy will grow at 6.9 per cent.

In the third quarter, the sectors that showed strong performance included "electricity, gas and water supply" growing at 9 per cent, construction at 7.2 per cent, "trade, hotels, transport and communications" at 9.2 per cent and "financing, insurance, real estate and business services" at 9 per cent.

Experts say that a policy paralysis and weakening global macro-economic conditions have affected corporate sentiments in the country.