India's economic growth disappoints

India's economic growth has remained subdued, due largely to a slowdown in the manufacturing sector, official figures have shown.

The economy grew at an annual rate of 4.6% between January and March, below analysts' forecasts and the same pace as the previous quarter.

For the full 2013-14 financial year, growth was 4.7%, the second straight year of sub-5% expansion.

New Prime Minister Narendra Modi has pledged to boost growth.

'Turnaround' coming

The manufacturing sector contracted at an annualised rate of 1.4% over the quarter, while the mining sector shrank by 0.4%. Offsetting this was a 6.3% growth in the agricultural sector.

"The quarter's weak growth was mostly due to weakness in investment, held back by last year's spike in interest rates, slow credit growth, and sentiment made more pessimistic by the rupee's volatility," said Bill Adams at PNC Financial Services Group.