India wins slowdown battle; defeated by rising prices in 2009

Chandra Shekhar & Rakesh Pathak
New Delhi, Dec 31 (PTI) 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 the Reserve bank of India (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 Indian 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 United Progressive Alliance
(UPA) to retain power, lent further colour. MORE PTI CS
RDM


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