Growth should be promoted, a bit of inflation could do: Sen
Press Trust of India / Kolkata Oct 09, 2009, 14:56 IST
Ahead of the Reserve Bank's monetary policy review later this month, Chief Statistician Pronab Sen today said little bit of inflation should be tolerated while promoting growth, even as the rate of price rise would cross the central bank's comfort zone by December.
Speaking at Bharat Chamber of Commerce here, Sen said the Indian economy would grow at seven per cent this fiscal, adjusted to decline in farm output.
"If there was no drought, then the GDP growth would have been 7 per cent. If the agricultural production loss is 2.5 per cent then, we can expect a GDP growth of 6-6.5 per cent," he added.
Sen, who is Secretary in the Ministry of Statistics and Programme Implementation, said industrial growth, which stood at 6.8 per cent in July, would hit double digit by December.
The government would come out with the August figures on Monday.
"Index of Industrial Production is likely to hit double digit growth by December year-on-year. By December, the WPI will cross RBI comfort zone of inflation. We have to tolerate little bit of inflation but the growth quotient should not be jeopardised," said Sen.
He added the government should not be more concerened about inflation. However, as there will be inflationary pressure, we should be cautious, Sen added.
Mr. Sen, I do know what are you talking and which growth you are talking and at what cost? You are a great man and hence you can speak whatever you like. Are you aware that Nimbu(Lemon) is being sold at Rs. 140 per kg, Ghiya is being sold at Rs. 25 per KG, Aloo about three months back was being sold at Rs. 5 to Rs. 8/- per KG is now being sold at Rs. 20 to Rs. 25/- per Kg., Sugar which was being sold at Rs. 18/- per KG about 8 months ago is being sold at Rs. 36/- per KG. Every kind of Dals are being sold at Rs. 95/- to Rs. 100 per kg while about 3 months back its price was Rs. 40/- per kg. These market prices of vegetables do not hurt you because you are being paid monthly salary of more than Rs. 80000 per month and perhaps you are not aware of these prices. For God's sake realise the ground realities.
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