The Economic Review, prepared under supervision of JNU Professor and State Plan Panel vice chairman Prabhat Patnaik, cautions that the new bubble rising in India, unlike the asset bubble in United States, is devoid of any potential for stimulating a recovery. Coming after years of decline in food grain production, this food grain bubble is likely to mark world economy and Indian economy in particular as an inflationary recession in the coming months, says the Kerala Government document.
While playing the Nostradamus of doom, the little State is bursting with happy news in its own right. In the sluggish growth year of 2008-2009, Kerala's per capita income growth rate has surpassed the All-India average per capita income of 6.7% a tad, clocking 6.98%.
In FY11, the State may post atleast 7.5% growth,saysStateFinance Minister TM Thomas Isaac. This per capita income growth was achieved, at an year when high-growth States like Punjab, Andhra Pradesh, Karnataka and Tamil Nadu could not maintain their previous year's growth rate and hover below the national average. The growth rates of Punjab, Andhra Pradesh, Karnataka and Tamil Nadu in 2008-9 were 6.26%, 5.53%, 5.08% and 4.55% respectively.