"The overall growth in 2004-05 is estimated at 6.9 per cent when compared with 8.5 per cent in the previous year," the finance ministry said in its annual report for 2004-05.
GDP growth of 8.5 per cent in 2003-04 was "significant", it said, adding such high growth was witnessed only on two previous occasions - 9% in 1975-76 and 10.5 per cent in 1988-89.
Citing CSO estimates, the report said agriculture is slated to grow by 1.1 per cent, industry by 7.8 per cent and services by 8.9 per cent in 2004-05. "The lower growth in agriculture and allied sector is on account of the lower Kharif output," it said.
The ministry blamed erratic and delayed monsoons, hardening of prices of oil, metals and minerals in global markets for the rising inflation that peaked to 8.7 per cent in August-end and then slipped to less than 6 per cent.
"Containment of inflation remains high on the agenda of the government," it said.
The government has taken anti-inflationary policies like strict fiscal and monetary discipline, cut in excise and customs duties of essential items so that there is no undue burden on the poor.
"The government also ensured effective supply-demand management of sensitive items through liberal trade policies and strengthening of the public distribution system," it said.