Asiana21

BUMP UP EXPORTS

Rajiv Kumar

The Week, June 14, 2009

The 6.7 per cent GDP growth in 2008-09 is significantly lower than the 9 per cent achieved in 2007-08. However, it is above expectations and indeed a sterling performance considering the troubled times. The 5.8 per cent growth in the second half of the fiscal year, though sharply lower than the growth in the first half, was achieved principally by an increase in government expenditure.

This is reflected in the 22 per cent increase in the community, social and personal services segments. This is a one-off hike on account of the Sixth Pay Commission and will not provide any future impetus. It is a little bit surprising to see trade, transport, hotel and communication sectors registering a 9 per cent growth, with agriculture and manufacturing sectors, which provide the demand for these services, seeing a decline. Agriculture growth slowed down from 4.7 per cent in 2007-08 to 1.6 per cent in 2008-09. Manufacturing growth slowed down from 8.2 per cent to a mere 2.4 per cent.

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