Growth should be promoted, a bit of inflation could do: Sen

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.