New Delhi: The government will try to sustain high rates of economic growth while keeping prices under control, President Pratibha Patil told a joint session of parliament ahead of Friday’s federal budget.
The economy, Asia’s third-largest, is forecast to expand 8.7% in the year to end-March, near a four-year average but slowing from 9.6% the year before as firm interest rates designed to stem price pressures curb domestic demand.
“This performance is all the more creditable against the background of high international oil prices and rising commodity prices including food,” Patil told lawmakers while flagging off the budget session of parliament.
“It will continue to be the endeavour of my government to sustain growth while keeping prices under check.”
Much to the central bank’s discomfort, inflation has been inching up in recent weeks, led higher by rising food and commodity prices.
Data released on Friday showed the wholesale price inflation was running at a six-month high of 4.35% in early February.