Inflation may retard GDP growth: Mukherjee
11 May 2011
Volatile international commodity prices, supply constraints and rising domestic prices may make it difficult for India to achieve a growth rate of around 9 per cent (9 +/- 0.25 per cent) in the current financial year (2011-12), finance minister Pranab Mukherjee said today.
To achieve sustained GDP growth rate of 9 to 10 per cent with fiscal prudence and moderate inflation is a major challenge, Mukherjee said.
He also projected inflation level in the country to remain in the range of 7 to 7.5 per cent during this period.
The main challenges before us today is how to bring entire society, especially the poor and vulnerable section of society, in the ambit of development process so that everyone shares fruits of benefit of growth and development, he said.
The second major challenge is to achieve sustained GDP growth at the rate of 9 to 10 per cent with fiscal prudence and moderate inflation.
The third major challenge is how to develop flexibility in our economic system so that we are not adversely affected or affected to minimum extent due to global economic developments and external shocks.
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