The finance ministry sounds confident of bringing inflation within manageable limits if the rabi crop is good and global commodity rates stabilise. | |
| "If the rabi crop is good and international commodity prices stabilise, we should be able to manage inflation this financial year within manageable limits," Finance Secretary D Subbarao said. |
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| Referring to rising commodity prices, he said no country, including India, was completely decoupled from the global happenings. "Generally, a recession in the US is accompanied by a fall in commodity prices, but this has not happened so far." However, if there is further downturn in the US, or recession, it should have a moderating impact on commodity prices, he said. |
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| In the backdrop of soaring inflation, the finance ministry is also preparing itself for a moderation in economic growth in 2008-09 compared with the projected 8.7 per cent for 2007-08. "Growth is moderate but it will be in keeping with high growth trajectory. It will be 8 per cent-plus. At present, controlling inflation is our priority, if there is moderation in growth, then so be it," Subbarao said. |
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