By NNN-PTI
New Delhi : Indian Prime Minister Manmohan Singh Friday said keeping the lid on inflation rate was a priority for his government, but controlling the price-line did not mean growth would be sacrificed.
Amid fears that a hike in petrol and diesel prices might fuel inflation, he said the government has taken an important policy stand to keep inflation under check and ensure that growth is more inclusive.
Calling inflation an iniquitous tax, he said: “It hurts the poor more than the rich. Therefore, it is essential that we ensure that the poor are not adversely affected by high inflation, particularly (that of) basic items of consumption. This is a matter of social priority and of their survival.”
Wholesale price index-based inflation rate grew by 4.07 per cent for the week ended February 2, a tad slower than the 4.11 per cent in the previous week.
But Thursday’s Rs 2 and Re one a litre increase in petrol and diesel prices respectively could push up inflation rate in the coming weeks.
Addressing the annual meeting of industry chamber FICCI here, he said he also saw no reason why India cannot sustain high growth, while successfully containing inflation.
“I know that some of you are not happy about our emphasis on inflation control. There have been some impatient editorials about the sacrifice of growth at the altar of inflation control,” he said.
“There are global concerns of a slowdown. We need to be aware of these concerns and we will take steps to limit their impact on us. The Finance and Commerce Ministers are seized of the matter. I do not see any reason why we cannot sustain 9 per cent growth even in the face of global slowdown.”