New Delhi, Aug 31 (IANS) The Indian economy grew at a faster rate of 8.8 percent in the first quarter of current fiscal as strong domestic demand resulted in a spurt of manufacturing activity, official data released Tuesday showed.

The country's gross domestic product (GDP) had risen 6 percent in the year-ago period.

During the three months under review, the manufacturing sector grew 12.4 percent, trade, hotels, transport and communication activities rose 12.2 percent, mining and quarrying 8.9 percent, according to a statement by the Central Statistics Office.

Agriculture, forestry and fishing grew 2.8 percent over the previous comparable quarter.

The government has predicted the economy to expand 8.5 percent in the current fiscal, faster than an annual growth of 7.4 percent in 2009-10.