The Indian economy logged 7 percent growth in the first quarter of the this fiscal, according to figures released on Monday, showing signs of slowing vis-a-vis the 7.5 percent expansion in the quarter before. This generated mixed reaction from the industry stakeholders.

Jyotsna Suri, president, Federation of Indian Chambers of Commerce and Industry, said Even though growth of 7 percent is encouraging in the current global economic scenario, we need to move this figure up given the imperative of employment generation.

As global demand situation is weak, domestic demand needs to be strengthened. Both consumption and investment levers need a thrust, she added.

In his reaction director general of Confederation of Indian Industry (CII), Chandrajit Banerjee said that the impressive 7 percent GDP growth at the onset of the first quarter of the current fiscal, which is higher than 6.7 percent experienced in the same period last year, bolsters the perception that the economy is showing signs of a turnaround and is on the road to recovery.

Rana Kapoor, president, The Associated Chambers of Commerce and Industry of India, said, "Agriculture, mining, manufacturing, electricity, gas, water supply and other utility services remain to be key areas of concern as the gross value added for all these sectors has slowed down in first quarter of 2015-16 vis-a-vis first quarter of 2014-15, though some progress is seen in trade, hotels and communications and construction sectors."

Devendra Kumar Pant, chief economist, India Ratings & Research said, First quarter GDP growth came in line with our forecast of 7 percent. The dismal electricity sector performance pulled down first quarter 2015-16 industrial growth to 6.5 percent from 7.7 percent. GDP growth this year will be led by consumption growth (backed by falling inflation and monetary easing), investment growth revival will take place once capacity utilisation starts increasing. Weak global demand also attributed to lower growth in first quarter.

Chief economist & vice president of Research at ZyFin Research, Debopam Chaudhuri said, the GDP growth estimates are in line with expectations. We don't see any significant recovery over the next two quarters with economic activity slumping further. Private consumption continues to remain less than 60 percent of the GDP suggesting low aggregate demand conditions.

K Sandeep Nayak, executive director & CEO, Centrum Broking, said that the GDP growth rate of 7 percent is a tad below expectations. However, a 7 percent growth is still the fast lane in comparison to the growth rates being achieved in other comparable economies of the world or for that matter the developed world.

This data read together with a benign CPI we had earlier this month increases the probabilty of rate cut by RBI in the policy due later this month.