YEAR-ECONOMY 2

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 Indian 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 in February 2009 provided the
third stimulus package to the industry to by announcing tax
cuts and raising public expenditure. MORE PTI CS/RHP
RDM


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