Monday, June 9, 2008

Indian government priorities inflation control

by Jo Black

Dr. Ashwani Kumar, Indian junior minister for Industry, has said that checking inflation and controlling price rises remains the foremost priority of the government.

Speaking with news reporters , Dr. Kumar stated that in this connection, the government has announced a series of measures to ease the pressure on prices, which had escalated in the beginning of this year.

While the full effect of these measures in checking price escalation is likely to be felt in the coming weeks, the positive effect thereof on the price of various items and commodities is already noticeable, he added.

A comparative statement of prices is indicated in the annexure, which would show that timely, purposive and resolute action by the government has had the effect of checking prices, the Minister said.

He further added that inflation rates would be brought down further in view of the empirical evidence of lowering of prices.

During the interaction, Dr. Kumar explained that in an economy on a high growth trajectory, some pressure on prices spurred by heavy demand is inevitable.

The government is, however, determined to control prices in a manner and at a level that will not cause hardship on the common man whose welfare is the first priority of the government.

The Minister mentioned that despite a global food crisis, the Government of India has been able to build up strategic food reserves through a calibrated policy of import and export controls.

The record production and procurement of wheat and rice ensured by the government will ensure that prices of food items are maintained at acceptable levels, he added.

Responding to the queries from the media persons, Dr. Kumar stated that the recent World Bank report had confirmed that India has successfully managed to maintain food prices at below global levels.

He further said that compared to other countries of the world including those in Europe, Latin America, South-East Asia, the government’s record of managing the food situation and prices of essential items through prudent economic management was satisfactory.

As regards cement prices, the Minister said that representatives of the cement Manufacturers Association have responded positively to suggestions of reducing cement prices, and added that the government has impressed upon industry that in the interest of all stakeholders, Indian Industry needs to hold prices so as to remain competitive, for which it is advisable to shun windfall profits.

Dr. Kumar underlined that in the course of the coming few days, further reduction in prices of cement can be expected.

 

 

 

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