This refers to the editorial ‘Beyond expectations’ (Dec. 4 ). It is a pleasant surprise to all that the results of the second quarter’s GDP growth are impressive. The stimulus package and timely calibration of the fiscal and monetary parameters have aided the growth and defied the global trend in the economic recovery. The real worry being the slowdown in agriculture, there should not be any place for complacency with this growth. Policymakers need to devise fresh strategies to sustain and accelerate the growth.
N. Sadhasiva Reddy,
Belying expectations, the GDP showed an impressive growth of 7.9 per cent in the second quarter of current fiscal year. This is mainly due to the contribution of the manufacturing and mining sectors, combined with stimulus packages and revival of domestic demand. The setback in the farm sector may be attributed to monsoon failure which is beyond the control of anyone.
If the same trend continues, we may hopefully expect the growth rate in the second half ( October 2009 - March, 2010) to be higher than the first half of the fiscal year when it was 7 per cent.
The editorial says the manufacturing sector was up by 9.20 per cent and agriculture by 0.9 per cent. A mere rise in the GDP is no indicator of the economic satisfaction of the people, especially when agricultural production is sparse. The manufacturing, mining and quarrying sectors are owned by the rich and they mostly cater for the middle and upper classes. The rise in the GDP may be good economic statistics but the appalling contrast does not augur well for the polity. The Central government is on the wrong track.