Finance Minister P Chidambaram on Tuesday dismissed reports that the Indian economy was overheated.
"No...it is premature (to talk about)," he told reporters when asked whether the economy was showing signs of overheating in view of the rising inflation.
The annual inflation rose to 5.45 per cent for the week that ended on November 18 from 5.29 per cent in the previous week mainly due to costlier minerals and manufactured items.
The wholesale price-based inflation was at 4.27 per cent during the corresponding week in 2005.
Chidambaram had earlier said that inflation remained an area of concern and the government wished to bring it down to below five per cent.
Indian economy grew 9.1 per cent during April-September this fiscal, the fastest growth in the first-half of any year since reforms began in 1991.
On the issue of bank lending to the real estate sector, the finance minister said it had advised banks to re-balance their portfolios by reducing exposure toward real estate and push more credit toward the production sector.