India's economy rebounds with rapid growth!!!!!!

Yesterday fourth quarter results have been announced and many of the People would have been surprised on hearing the news "India's economy rebounds with rapid growth rate of 8.6%" "8.6% surge in Q4 boosts '09-10 GDP growth to 7.4%" - TOI "India's Q4 GDP grows at 8.6% y-o-y" - ET . Along with this they have mentioned that Manufacturing sector helps to drive quarterly growth rate to 8.6%. The farm sector has grown by 0.7 per cent, manufacturing grew by 16.3, mining sector grew by 14 per cent and service sector grew by 8.4 per cent in the fourth quarter of the last fiscal year (i.e. 2009-10). This 8.6% growth in the Fourth Quarter helps the economy to grow to 7.4% in entire Fiscal Year (2009-10). The first three quarters of the last fiscal (2009-10) grew at 6.1 per cent in Q1, 7.9 per cent Q2 and sluggish of 6 per cent in Q3. Yesterday the Q3 estimate is again revised to 6.5 percent from 6 per cent.

Now let us put this growth story aside for sometime. Let us look at the inflation story which is still worrysome despite of fall in Inflation rate. India's food inflation rate eased slightly to 16.23 per cent on May 15 from 16.49 per cent in the previous week. Reserve Bank of India (RBI) Governor Mr. Duvvuri Subbarao said on Tuesday that "Inflation is not at peak level. It is still higher than we would like it. We would take inflation concerns along with growth (while formulating monetary policy)" India's annual wholesale inflation was at 9.59 per cent in April, coming off from a 16-month high of 10 per cent in February. (source: netindia.in).

Despite of 7.4% growth rate we still have few questions which need some answers. Whether Growth Rate implies improve in Standard of Living of the People? When the inflation rate will become more stable? How a comman man can be benefitted from the Growth rate? Is governments inclusive growth is a reality or myth? It is not at all easy to answer any of this questions. These are the basic questions which goes in the mind of every comman man irrespective of his knowledge in economics. But it is hard to provide any answer. Suddenly another question props up - Whether this growth rate will continue, if it continues then whether it can eradicate poverty to certain extent? Is there any realtionship between Growth rate and Poverty eradication? Again no answers for this question from me. Can anyone explain or give some answers for any of my questions. I would be glad to hear your views.