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Good News for India's Economy
As reported by the finance ministry, Indian economic growth is predicted to spur as much as 7.75 percent in 2009. Two of the most important reasons are the improving U.S economy in second quarter reports and the recent successful harvests from the monsoon rains.
India's exports fell for the eighth consecutive month in May 2009, while industrial output increased 1.4 percent in April 2009. The economy expanded 6.7 percent, which is the most sluggish pace in the past six years, since 2003, where the economy expanded between 8.5 percent and 9 percent. Among India's many strengths is the country's large service sector, which contributes about 55 percent of India's GDP. Furthermore, the government's rural jobs program, which guarantees 100 days of work in a year for the poor has kept "rural income and consumption strong," according to the finance ministry. With income, consumption, growth, output and a strong service sector, India's economy "has shock absorbers" that will ensure the country's economic revival.read source article