Govt aims to curb inflation: Montek

RISING CONFIDENCE: Montek says he is confident that the rate of inflation will come down soon.

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New Delhi: Deputy Chairman of the Planning Commission, Montek Singh Alhuwalia has said that inflation is a matter of concern, but that the Government is taking adequate steps to control it.

Sandeep Bannerjee: Inflation is a major cause for concern. Do you think that the steps taken by the Government to control it are adequate and what are the long term implications of these steps?

Montek Singh Alhuwalia: The Government has categorically said that inflation is a subject of concern and a number of steps to curb it have been taken in the past six months or so. Some have been on the supply side, some active on the macro economic demand side.

Whenever there is a upsurge in inflation, it takes some time before it can be brought down and I am very confident that the rate of inflation will come down and the Government will take all steps necessary in order to make sure it comes down.

Sandeep Bannerjee: The share of agriculture in GDP is reducing, the industries are growing, service sector is showing a very positive upswing. What is your take on these sectors?

Montek Singh Alhuwalia: Agriculture is a centrally important area of concern. Some reduction in the share of agriculture in the GDP is unavoidable in development, but we feel that the growth rate of agriculture has been less than it should be. It has improved over the last two years. In the five or six years before that, the growth rate of agriculture had dropped to below two per cent. In the last two years, it has been above two per cent but we want it to go up to four per cent.

Now, even if it goes up to four per cent and the economy grows at nine per cent, the share of agriculture in the GDP will fall. But, that does not mean that agriculture is not important. In my view, we need to evolve a policy that will make sure we have more agricultural growth than we do.