Delhi: C Rangarajan, chairman of the Economic Advisory
Council to the Prime Minister, and Planning Commission
Deputy Chairman Montek Singh Ahluwalia say they see signs
of the economy overheating.
said, "There are signs of overheating in the economy
and the 9 per cent economic growth is putting pressure
on inflation." He also said that the upswing in the
economy was unlikely to continue in the long run.
the former governor of the Reserve Bank, said at a book
release function here that overheating was cyclical in
nature, but it must be ensured that overheating must not
become structural. He said overheating would become structured
if certain sectors of economy like infrastructure do not
develop as fast as the economy.
further said that the current price rise was unacceptable
and the monetary demand side and supply side problems
must be addressed.
said inflation had been brought under control as the government
has taken several fiscal and monetary measures.