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Tamil Nadu

Fiscal measures will be intensified: Chidambaram

Staff Reporter

Extraordinary growth rate is also one of the reasons for inflation

KARAIKUDI: The Centre is fully aware of the inflationary trend and it will intensify several fiscal and monetary measures to contain the inflation, Union Finance Minister, P. Chidambaram, has said.

“There are many reasons for inflation. Extraordinary rate of growth is also one of the reasons. Growth fuels inflation. The rate of inflation in China and Russia stands at 8.7 and 12 per cent respectively. India’s inflation rate is far below compared to these countries. It is hovering around 5.9. However, the government is trying hard to bring it down further,” he said. He was inaugurating the national conference on Development Dynamics at Alagappa University here on Saturday.

Owing to economy boom, overall demand of various materials including cement and steel had increased rapidly, Mr. Chidambaram said. Consumption rate had increased world wide. Economists in the United States were of the view that the hike in steel price world wide was mainly due to spurt in economic growth in China and India. It might be true in certain perspective.

The Minister said the government had exempted or reduced import duty on certain commodities including edible oil to contain the inflation. However, it would keep a close watch on its impact and take further steps based on it.

The Vice-Chancellor, P. Ramasamy, said it was good to see the tremendous growth for the last four years. The benefits of the economic boom must be channelled in a proper way so as to reach the under privileged. It was time the policy makers removed the obstacles for inclusive growth.

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