India wins slowdown battle in 2009

New Delhi: India achieved the distinction of being the second fastest growing economy amid the global recession in 2009, but the joy was marred by the decade's sharpest rise in food prices to the chagrin of common man.
For a country that continued to lose on its exports throughout the year that has gone by, economy achieved a remarkable growth of about seven per cent (during April-September 2009) on the back of focused government stimulus in tandem with well articulated interest rate-cum-monetary policy of RBI.
But it is a paradox of sorts that price line that dipped from a 13-year high into negative zone at one point during the year climbed sharply again, with food inflation touching more than a decade's high of 20 per cent.
From the growth focus, the government had to concentrate on fighting the natural disaster ranging from drought to floods in different parts of the country that led to shortages of foodgrains and fruit and vegetable and the resultant spurt in their prices caused a political storm.
To add to this roller coaster, developments in the economy, including in the share market, the general elections in May that helped Congress led UPA to retain power, lent further colour.
In the New Year, fear of rising inflation will continue to influence the economic policies, whether it is monetary review to be announced by the RBI on January 29 or the Budget to be unveiled by Finance Minister Pranab Mukherjee towards the end of February.
Powered by strong doses of three stimulus packages, the Indian economy did well, only next to China in terms of growth. Despite widespread drought and devastating floods in parts of the country, the economy during 2009-10 is estimated to expand by 8 per cent, up from 6.7 per cent in the previous fiscal.
India's growth during 2008-09 dipped from 9 per cent on account of the impact of the global financial crisis.
Stimulus, green shoots and exit policy will continue to remain the buzzwords as the government in the coming year will move forward to withdraw the extraordinary steps it took to fight the impact of global meltdown, domestic drought and spiraling food prices.
The focus of economic planners during the initial months of 2009 was to continue the stimulus to tide over the impact of financial crisis triggered by collapse of America's iconic banker Lehman Brothers in September 2008.
Not waiting for the election results, Mukherjee, while presenting an interim budget inFebruary 2009 provided the third stimulus package to the industry to by announcing tax cuts and raising public expenditure