The robust performance of India, which has the world's second fastest economy after China, was driven by strong growth in manufacturing, services and construction sectors, official data released here on Friday said.

Finance Minister Palaniappan Chidambaram hailed the showing and sought 'political space' for further economic reforms, especially in financial sector, which he termed as the 'heart' of the economy.

The manufacturing sector grew by 11.3 per cent as against 10.7 per cent during the corresponding period of the previous year. On the other hand, service sector, which accounts for half of the GDP (gross domestic product), grew by 13.2 per cent and construction expanded by 9.5 per cent, said data put out by the Central Statistical Organisation.

The trade sector grew by 13.2 per cent as against 11.7 per cent during the first quarter of 2005-06.

The pace of overall economic growth lagged the record 9.3 per cent posted in the final three months of the fiscal year to March 2006 but was still above the forecasts by economists of 8.5 per cent to 8.7 per cent.

Agriculture, on which around two thirds of India's more than one billion people depend for livelihood and which accounts for nearly a quarter of the GDP, grew by only 3.4 per cent, down from 5.5 per cent in the preceding quarter.

Even the traditionally laggard mining sector and quarrying sectors improved marginally in the first quarter of the current financial year-- 3-4 percent compared to 3.1 per cent during the first quarter of 2005-06.

Elated by the economic result, Chidambaram asked the coalition partners of Congress to cooperate with the government's efforts to push ahead with more reforms.

"In a coalition, it is very important that the political space is given to the government to undertake more economic reforms in order to further improve India's growth story," he said.

The finance minister's remarks assume significance against the backdrop of key UPA allies -- the Left parties, which support the government from outside -- opposing financial sector legislations. Three bills on opening up the financial sector-allowing higher FDI in insurance, including removal of voting rights cap in private banks from ten per cent and setting up a statutory pension sector regulator are pending parliamentary approval.

"Financial sector is the heart of the economy and unless financial sector reforms are completed, it will be difficult to sustain high growth", Chidambaram said, adding that it was important the government is able to pass legislations for banking and pension.

"With the cooperation of all economic players, the second half of the United Progressive Alliance government will turn out even better or at least equal to the first half," he said.