PM hopeful of 8.5 per cent growth in current fiscal

From V Mohan Narayan
On Board PM's Special Aircraft
(PTI) Disagreeing
with the Reserve Bank, Indian Prime Minister Manmohan Singh on
Saturday expressed optimism that India will be able to achieve
8.5 per cent growth during the current fiscal despite concerns
over high oil prices.
"As of now I have not seen any sign that we should change
our view with regard to our ability to sustain a growth rate
of 8.5 per cent... I am confident that we will be able to
sustain a growth rate of 8.5 per cent this year", he told
reporters who accompanied him on his visit to Africa.
The Reserve Bank of India, country's central bank, in its
annual credit policy had pegged the growth for the current
fiscal at 8 per cent, down from 8.6 per cent recorded during
2010-11.
Referring to agriculture situation and its impact on
inflation, Singh said, "Whatever evidence we have, we expect a
normal monsoon. And if the monsoon is normal, it will
strengthen our ability to control food inflation".
The headline inflation was 8.66 per cent in April, much
higher than the Reserve Bank's comfort level of 5-6 per cent.
On oil prices, Singh said, "There are problems with
regards to the burden of oil subsidies. They have to be
tackled and all these issues will be claiming our attention in
weeks and months to come".
Although the oil marketing companies have raised the
petrol rates in view of spiralling prices in the international
market, the government is yet to take a view on diesel prices.
A decision on raising diesel price is likely to be
taken by the Empowered Group of Minister (EGOM) headed by
Finance Minister Pranab Mukherjee in the second week of June.
India imports about 75 per cent of its total crude oil
requirement.