No sacrificing growth to curb inflation: Ahluwalia
Planning Commission deputy chairman Montek Singh Ahluwalia says that besides high inflation, the government is trying all means to keep the economic growth over 8 per cent.Updated: May 14, 2008 18:04 IST
With India's inflation hitting a high of over seven per cent, the government is trying all means to keep the economic growth over eight per cent, Planning Commission deputy chairman Montek Singh Ahluwalia said in New Delhi on Wednesday.
"It is important to control inflation while keeping growth at eight per cent. High inflation will kill the medium-term growth process," Ahluwalia told reporters on the sidelines of an event in New Delhi.
During the current fiscal, the economy is expected to grow at a rate of 8-8.5 per cent, he said.
India's wholesale inflation hit a three-and-a-half-year high due to rising oil and food imports. The inflation rate was 7.61 per cent in the week ended April 26. The government has taken a plethora of measures from accelerating supplies and banning exports of some items to ease the inflation.
"We are not sacrificing growth to control inflation... We consistently said the growth target laid by government is 8-8.5 per cent. I will not be surprised if it is at the lower end of the range," Ahluwalia said.