On Board PM's Special Aircraft: Amid the April-June quarter growth slipping to 5.5 percent, the lowest Q1 growth in the decade, Prime Minister Manmohan on Friday strongly pitched for creating conducive ambience to boost investment and economy.

Blaming "lack of cohesive coordination" in domestic politics as one of the factors hampering growth rate, he said the government would make efforts to improve upon the growth performance of 6.5 percent (in 2011-12) and create an ambience conducive to growth of saving and domestic investments.

The Prime Minister was talking to reporters accompanying him on his return from Tehran after attending the Non-Aligned Movement (NAM) Summit.

Prime Minister's statement also comes a day after Standing Committee on Finance, which is headed by BJP leader Yashwant Sinha, expressed concerns over the current "gloom and doom" scenario and underlined the need for a "well thought-out revival policy" for growth and to speed up enactment of financial reforms bills.

The growth rate in the first quarter (April-June), according to the data released by the government earlier in the day, slipped to 5.5 percent from 8 percent in the corresponding period in the last fiscal, due to flat growth in manufacturing, mining and quarrying sectors.

The data of eight key infrastructure sector industries including steel, cement and petroleum revealed that growth rate in July slipped from 8.2 percent to 1.8 percent, the lowest in the last nine months.

Commenting on the GDP data, Finance Minister P Chidambaram said, "...the decline of fixed investment is source of concern to the government. It emphasises once again the need to take quick decision to accelerate investment, especially removing all bottlenecks to investment in the manufacturing sector."

(Agencies)

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