India’s gross domestic product will likely grow at 7% in 2022-’23, declining from 8.7% in 2021-’22, the Ministry of Statistics said on Friday.

In the first advanced estimates of National Income for 2022-’23, the government said it expects economic growth to slow down in the financial year ending March, primarily because of poor performance of mining and manufacturing sectors.

The government’s latest estimates is much lower than its earlier forecast of 8%-8.5% but higher than the 6.8% projection made by the Reserve Bank of India.

The manufacturing sector output is estimated to decelerate to 1.6% this fiscal year from 9.9% in 2021-’22, according to the first estimate. Similarly, mining sector is estimated to grow just 2.4% in 2022-’23 as against 11.5% the previous financial year.

However, the agriculture sector is projected to grow at 3.5% from 3% in the previous year.

Trade, hotel, transport, communication and services related to broadcasting segment is estimated to grow at 13.7% from 11.1% in 2021-’22. Construction sector is reckoned to decelerate to 9.1% from 11.5% a year ago.

The government uses the advanced estimates for the Budget formulation exercise. The Budget for the next fiscal year will be presented on February 1. This will be the Modi government’s last full Budget before the general elections that are due in 2024.