`Signs of overheating of the economy will not continue'
Inflation has been brought under control
Next target is to put agriculture on high growth rate
NEW DELHI:
Planning Commission Deputy Chairman Montek Singh Ahluwalia on Tuesday said the "signs of overheating" of the economy would not continue in the long term. He, however, conceded that the high growth rate was leading to inflationary pressures.
In an interaction with newspersons after a Group of Ministers' meeting with the Left parties on the insurance sector, Dr. Ahluwalia said: "Inflation has been brought under control as the Government has taken several fiscal and monetary measures ... the current upswing in the growth rate is unlikely to sustain for all times to come."
Overheating of the economy, he said, was a reflection of the fact that the demand for goods was pushing ahead of capacity in certain sectors. This, in turn, was leading to the rise in prices.
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