Inflation peaking now, growth will not be dampened: Nath
Inflation will move up by few points to peak in the near future but will not act as a dampener to growth, Commerce and Industry Minister Kamal Nath said on Thursday.
By PTI |
NEW DELHI: Inflation will move up by few points to peak in the near future but will not act as a dampener to growth, Commerce and Industry Minister Kamal Nath said on Thursday.
"It is going to go up by another 0.2 or 0.3 per cent. But we are hoping that in the next two months, we will have some effects of the measures we have taken," Nath told reporters here.
Inflation touched a 13-year high of 11.05 per cent for the week ended June 7 forcing the government and RBI to take several fiscal and monetary measures to check the price rise.
"I think we are peaking out on inflation. The figures are going to peak now. We will soon be starting a decline," Nath said.
Finance Minister P Chidambaram has also said that double-digit inflation is likely to continue for a few more weeks before government efforts kick in to ease the rate of price rise.
"Any government in any democracy in a situation of high inflation has to be defensive," Nath said.
Nath said India is importing a large quantity of edible oil and crude, prices of which are ruling high globally. "A large part of the inflation is imported," he said.
He said though high interest will add to manufacturing cost, it can be neutralised by operational efficiencies of the industry.
"Somewhere there is pessimism on our growth. I want to dispel that," he said.
Even in April, the manufacturing sector grew by 7.5 per cent in April. Overall he expected the industrial growth to be in the range of 8-9 per cent in the current fiscal.
"It is going to go up by another 0.2 or 0.3 per cent. But we are hoping that in the next two months, we will have some effects of the measures we have taken," Nath told reporters here.
Inflation touched a 13-year high of 11.05 per cent for the week ended June 7 forcing the government and RBI to take several fiscal and monetary measures to check the price rise.
"I think we are peaking out on inflation. The figures are going to peak now. We will soon be starting a decline," Nath said.
Finance Minister P Chidambaram has also said that double-digit inflation is likely to continue for a few more weeks before government efforts kick in to ease the rate of price rise.
"Any government in any democracy in a situation of high inflation has to be defensive," Nath said.
ADVERTISEMENT
Nath said India is importing a large quantity of edible oil and crude, prices of which are ruling high globally. "A large part of the inflation is imported," he said.
He said though high interest will add to manufacturing cost, it can be neutralised by operational efficiencies of the industry.
"Somewhere there is pessimism on our growth. I want to dispel that," he said.
Even in April, the manufacturing sector grew by 7.5 per cent in April. Overall he expected the industrial growth to be in the range of 8-9 per cent in the current fiscal.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
