Asking people to be patient, Planning Commission Deputy Chairman
Montek Singh Ahluwalia on Wednesday said that inflation, which is at a
44-month high, will moderate significantly by August-September.
"Given a certain amount of patience, inflation will come down in 3-4
months significantly," he told reporters on the sidelines of an
Assocham conference on 'India Inc Vision 2020'.
Prevailing uncertainties in the economy would have resolved themselves
by the end of 2008, he said.
Inflation rose to a 44-month high of 7.83 percent for the week ended
3rd May despite the fiscal and monetary measures taken by the
government and the Reserve Bank of India.
Referring to the growth rate in India, Ahluwalia said if the economy
grows at a rate of 8 percent over a period of five years, "a target of
9 percent growth in the Eleventh Plan is not unreasonable".
"I am very confident that India is at a position when it will get a
higher growth rate in the days ahead," he added.
He further said that final economic growth figures for 2007-08 would
be higher than the initial projection of 8 percent plus, as the
agriculture sector output has not been adequately accounted for in the
estimates.
Stressing on the need to make growth more inclusive, Ahluwalia said "a
good policy, if does not incorporate inclusive growth, will not be
sustainable in the long run".
Attributing the slowdown to global developments, he said "our
endeavour should be to maintain and improve the policies. The good
performance of the economy should not be taken for granted".
Referring to challenges being faced by the agriculture sector,
Ahluwalia said the farm sector growth rate was just around 2 percent
between 1997-2004, which was "not good for the economy".
He said the foodgrains production in the Eleventh Plan would increase
by 2.5 percent each year with technologies at the disposal of farmers
and therefore foodgrains stock would not suffer.
The aim in the Eleventh Plan, he said, was to achieve a growth close
to 4 perent in the agriculture sector.
He said the country would need an investment of around Rs 4.2 lakh
crore during the current Plan to ensure double-digit growth of
industrial sector.
Ahluwalia said apart from infrastructure and agriculture sectors, the
country needs to focus on health, energy, water and employment.
Speaking on the occasion, Assocham President Venugopal Dhoot said with
growth came inflation, but it would decline in few months.
He said that the economy would grow around 8 percent despite the fall
in industrial production and rising inflation.
Has your work life balance shifted? Find out.
No comments:
Post a Comment