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ECONOMIC SURVEY 2008-09 : Highlights
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· Economic growth decelerates to 6.7 per cent in 2008-09 compared to 9 per cent in 2007-08 and 9.7 per cent in 2006-07.
· Per capita growth at 4.6 per cent.
· Deceleration in growth spread across all sectors except mining and quarrying; agriculture growth falls from 4.9 per cent in 2007-08 to 1.6 per cent 2008-09.
· Manufacturing grows at 2.4 per cent, slowdown attributed to fall in exports and a decline in domestic demand.
· Global financial meltdown and economic recession in developed economics major factors in India’s economic slowdown.
· Investment remains relatively buoyant, ratio of fixed investment to GDP increased to 32.2 per cent in 2008-09 compared to 31.6 per cent in 2007-08.
· Fiscal deficit to GDP ratio stands at 6.2 per cent.
· Credit growth declines in the later part of 2008-09 reflecting slowdown of the economy in general and the industrial sector in particular.
· Increased plan expenditure, reduction in indirect taxes, sector specific measures for textile, housing, infrastructure through stimulus packages provides support to the real economy.
· Merchandise export grows at a modest 3.6 per cent in US Dollar terms while overall import growth pegged at 14.4 per cent.
· A large domestic market, resilient banking system and a policy of gradual liberalisation of capital account to help early mitigation of the adverse effect of global financial crisis and recession.
· Sharp dip in the growth of private consumption a major concern at this stage.
· Medium to long-term capital flows likely to be lower as long as the de-leveraging process continues in the US economy.
· Revisiting the agenda of pending economic reforms imperative to renew the growth momentum.
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