Right governance needed for 10 per cent growth: Montek

The action taken by the government and the Reserve Bank of India to tame inflation will show results in the second half of the fiscal year that ends in March 2011, deputy chairman of the Planning Commission Montek Singh Ahluwalia said on Tuesday.

He added that short term policy calibration would depend on the evolving macroeconomic situation.

The wholesale price index, India's most closely watched inflation measure, has risen more than 10 per cent from a year earlier for the past five months.

The index rose 10.55 per cent in June and is expected to record a double-digit rise in July.

Ahluwalia said inflation will come down from the double digits level to about 6 per cent by December and the growth rate will climb to 10 per cent in the near future.

''Around December, the WPI on a year-on-year basis would be close to 6 per cent. There is already some softening taking place. A lot of action that is taken is slowly going to roll out,'' Ahluwalia told reporters in New Delhi.