Planning Commission Deputy Chairman Montek Singh Ahluwalia on Thursday said a 9-10 per cent growth rate was achievable by India in the medium term, while the economy would log around 8 per cent growth in the current fiscal.
"We are targeting 9 per cent growth in the medium term, and getting up to 10 per cent," Ahluwalia told reporters on the sidelines of a function in New Delhi.
Ahluwalia termed the target "quite achievable", saying it “may look ambitious with a slowdown in the global economy, but is achievable in the medium term”.
He said the problem of inflation was short term and would moderate in due course, as the government has taken several monetary and administrative measures to rein in inflation.
"Inflation will moderate. Let's have patience," Ahluwalia said.
India's annual rate of inflation touched a 13-year high of 12.44 per cent for the week ended on Aug 2.
Ahluwalia also set aside the apprehension that the government's recent decision to hike employees' salaries would have any adverse impact on the country's economy.
"We will be able to deal with any implications (arising out of the salary hike)," he said.
The prime minister's Economic Advisory Council (EAC), in its "Economic Outlook Report 2008-09", has predicted a 7.7 per cent economic growth in the current fiscal, as compared to 9.1 per cent last fiscal.
Former Reserve Bank of India (RBI) Governor C Rangarajan, who released the EAC's economic outlook report here Aug 13, had said inflation would moderate to 8-9 per cent by March 2009.