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9% growth, thanks Agro

May 30, 2008

Jumps the elusive 9% barrier, with huffs and puffs. Thanks Agro!

The last moment respite for Indian economy came from an unexpected quarter. Agriculture, after the bumper winter crop harvest[see here for rabi production and here for overall crop production] has pulled out GDP growth from what seemed to be destined to a sub 9% growth. With the recent scenario of global economy overheating and Indian economy responding in kind, Indian trade has taken quite a beating. IIP, Index of Industrial Production has hit a 6 year low, of 3% growth during 2007-08. But thanks to agricultural growth, some respite for the politicians has come up. Agriculture during this same time, has gone up by 4.5%.

What a degradation, for a sector which was once the chief driver of our economy. In 50’s its contribution to our economy was 80%, today it is hovering around somewhere near 18%. And finally the irony is, the very politicians whose short vision brought this downfall are being saved by this sector πŸ™‚ At least temporary relief, if nothing else.

Government in Delhi will use it to showcase, that “hey look! aam aadmi is the one who has benefited and see, we pulled it to 9% growth this time”, but seldom will they show that the true marker of industrial production, IIP has taken quite a beating during this time.

Well, as somebody said, there are three kinds of lies, Lies, Damned Lies and Statistics… πŸ™‚

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