New Delhi: India is targeting 10% gross domestic product growth over the fiscals between 2011-12 and 2016-17, Prime MinisterManmohan Singh said on Thursday, as he called on the Reserve Bank of India (RBI) to formulate policies to control inflation and pave the way for faster economic expansion.
Addressing RBI’s platinum jubilee celebrations, Singh said monetary and fiscal policies must ensure that “inflation is kept under control as it hurts the common man the most and also distorts economic signals”.
His advice comes about a fortnight before RBI’s annual monetary policy announcement, where a major challenge would be to tackle inflation that is nearing double digits.
Singh, himself a former RBI governor, said policies should bring about stability of the banking and financial sectors and protect the system from any crisis, besides meeting the financial intermediation of rapid and inclusive growth.
In contrast to a period of slower growth witnessed by industrialized countries, India has emerged stronger with good prospects for better performance on account of high savings and investment rate, he said.
“We must build on these strengths and return as quickly as possible to a high growth path. I believe we can get back to 9% by the end of the 11th Plan (2007-12) and do even better thereafter,” he said, adding that the Planning Commission has been directed to explore 10% growth in the next Five-Year Plan.
Finance minister Pranab Mukherjee, who also participated in the celebrations, said the government would soon come out with a paper on the proposed Financial Stability and Development Council that would oversee the financial sector.