The Hindu : National : No compromise on growth: PM

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No compromise on growth: PM

Special Correspondent

NEW DELHI: Prime Minister Manmohan Singh on Friday maintained that even as the United Progressive Alliance government was taking “determined measures” to hold the price line, the challenging task of taming the inflationary spiral should not be at conflict with the country’s GDP growth which must touch at least 10 per cent to help in eradicating poverty.

Expressing concern at the recent spurt in prices while addressing the nation from the ramparts of the Red Fort on Independence Day, Dr. Singh noted that even as India emerged as one of the fastest growing economies, tackling inflation remained a major challenge.

“I know how much each one of you is concerned about the recent rise in prices. The inflation we have seen this year is basically due to external factors. All over the world and in global markets the price of food, fuel and other commodities has been rising ... We are taking determined measures to bring prices under reasonable control,” he said.

In this regard, Dr. Singh noted that he had sought the cooperation of States to tackle inflation. “I have urged all Chief Ministers to improve and strengthen the Public Distribution System to ensure availability of essential commodities to the common man at reasonable prices.”

At the same time, Dr. Singh cautioned that the steps being put in place to rein in inflation should in no way affect economic growth which had been maintained at 9 per cent over the last four years. “Our economy must grow at the rate of at least 10 per cent every year to get rid of poverty and generate employment for all,” he said.

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