·         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.

Economic growth slowdown signals fiscal and monetary policy need for stimulus to support demand and stabilize investment. Economic growth decelerated in 2008-09 with slowdown across agriculture, manufacturing and services; reduced exports and weak domestic demand hit manufacturing and private consumption dipped sharply. Fiscal loosening, tax reductions and sectoral stimulus measures supported the real economy while investment ratios remained relatively buoyant even as credit growth slowed. External financial meltdown constrained capital flows and trade saw modest export growth against higher imports; a large domestic market, resilient banking system and gradual capital account liberalisation were noted as mitigating factors, with emphasis on revisiting pending reforms to restore momentum.