India is taking steps to bring inflation under reasonable control and insulate the poor from its impact, as it strives to balance the need for a high pace of economic growth, Prime Minister Manmohan Singh said on Friday, while addressing the nation from the ramparts of Red Fort on the 62nd Independence Day.
The PM said the country?s economy must grow at 10% every year to get rid of poverty and generate employment. The Prime Minister?s Economic Advisory Council has, earlier this week, predicted a 7.7 % economic growth in 2008-09, a tad less than the 8% growth expected by the central bank.
Blaming the surge in inflation to a 16-year high at 12.44 % on higher global costs of fuel and food, the PM empathised with the people, saying ?I know how much each one of you is concerned about the recent rise in prices. In many developing countries the rate of inflation is double that in India. Our government has worked hard to ensure that in India the rate of inflation is not as high as in many other countries.?
Singh added that the government has taken special measures to ?insulate the poorer sections of society from the full impact? of rising prices, pointing out that his government has not raised the prices of kerosene and fertilisers and the issue prices of wheat and rice under the Public Distribution System (PDS). ?I have urged all chief ministers to improve and strengthen the PDS to ensure availability of essential commodities to the common man at reasonable prices,? the PM added.
Singh?s government faces elections in less than a year and it sees inflation as a key factor that can mar the ruling alliance?s poll prospects. Still, Singh said the battle against inflation shouldn?t hurt the record economic expansion he has presided over since 2004. ?The RBI is moderating the growth of money supply in the country so that inflation can be controlled. However, while making these efforts we should avoid doing anything which hurts our growth,? the PM said.
The PM also emphasised the importance of energy availability to generate employment for all, saying: ?The nuclear agreement that we are negotiating with developed countries will end India?s nuclear isolation. It will enable us to provide electricity to meet the needs of our farmers, our artisans, our traders and our industry.?