Expressing concern over rising prices, Prime Minister Manmohan Singh on Thursday asked the Reserve Bank of India to formulate policies that control inflation and pave the way for nine per cent or more economic growth.
Addressing the Platinum Jubilee celebrations of the central bank, he said the monetary and financial policies must
ensure that "inflation is kept under control as it hurts the common man the most and also distorts economic signals."
Singh, who himself was RBI Governor in the 1980s, said the policies should also bring about stability of the banking and financial sectors to avert any financial crisis, besides meeting the financial intermediation of rapid and
inclusive growth.
The prime minister's advice comes about a fortnight before RBI's annual monetary policy, where a major challenge
would be to tackle inflation that is nearing double-digits.
Contrary to a period of slower growth witnessed by industrialised countries, India has emerged stronger with a
good prospect of better performance on account of high savings and investment rate, he said.
"We must build on these strengths and return as quickly as possible to a high growth path. I believe we can get back
to 9 per cent by the end of the Eleventh Plan (2007-2012) and do even better thereafter," he said, adding that the Planning Commission has been directed to explore 10 per cent growth in the next five year plan.
"We must build on these strengths and return as quickly as possible to a high growth path. I believe we can get back
to 9 per cent by the end of the Eleventh Plan (2007-2012) and do even better thereafter," he said, adding that the Planning Commission has been directed to explore 10 per cent growth in the next five year plan.