Reviving ‘animal spirits'

Viewed purely in statistical terms, the year 2008-09 was the worst in recent times for the Indian economy, with average industrial growth of 2.5 per cent. The period from December 2008 to June 2009 registered seven consecutive months of negative growth, making it a textbook recession. The Centre's fiscal deficit, too, rose from 2.5 per cent to 6 per cent of GDP in 2008-09, marking the largest ever deterioration for any single year. But if one were to look beyond bland statistics, 2008-09 was not at all as bad as the fiscal that has just gone by. 

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