YEAR-ECONOMY 3 LST

These stimulus packages, backed by easing of monetary
policy by the Reserve Bank, yielded some results which
economists described as "green shoots".

As the green shoots appeared, the economy started
looking up and in the second quarter (July-September 2009-10)
recorded a high growth rate of 7.9 per cent, much more than
anticipated by any analyst or think tank.
The impact, however, was not so visible on the external
front as exports continued to remain in the negative zone for
most part of the year. This has been on account of slow
recovery in the external market.
Now with the US economy during the quarter (July-
September) recording a growth of 2.2 per cent, though less
that the initial estimate of 3.5 per cent, Indian exports too
may look up in future.
After a gap of 13 months, exports in November registered
a growth of 18 per cent and rise might continue with the
global economy gradually shedding the recession, described as
worst since the Second World War.
Buoyed by the performance in the second quarter, the
Planning Commission of India and the Indian Prime Minister's
Economic Advisory Committee (PMEAC) have talked about revising
their growth projections once the data for the second quarter
was made public. Both these organisations had projected 6.5
per cent growth rate for the current fiscal. PTI CS/RHP
RDM


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