Manmohan Singh to initiate measures to curb inflation: Chidambaram

Prime minister Manmohan Singh will initiate new measures over the coming days to curb inflation and bring the economy back to a high-growth path, home minister P. Chidambaram said in Chandigarh.

Speaking to reporters, Chidambaram said Singh had identified areas including promoting savings and investments and containing both the fiscal and current account deficits. ''In the days to come you will find the government addressing these issues and once we address these issues, we will get back to the high growth path,'' he said.

The home minister pointed out that returning to the high-growth path was ''not a matter of rhetoric or politics.'' These were issues that had to be addressed and tackled, he added.

''The prime minister has now taken over the finance portfolio,'' said Chidambaram. ''I can assure you that he will be taking a number of measures to address these issues. I am absolutely confident that we will bounce back to higher growth.''

Chidambaram, seen as a rival to former finance minister Pranab Mukherjee – now the UPA's presidential nominee – however, refused to be drawn into any controversies. Asked whether Mukherjee was not capable as a finance minister, especially as the government was initiating new measures following his departure from the finance ministry, Chidambaram said he had taken several measures to address savings, investment and current account deficit.

''It's not correct to say that measures were not taken earlier,'' said Chidambaram. ''Measures were taken earlier, but we find that some more measures are required and I am confident that the prime minister will take the necessary measures.''