Two days after his statement on overheating of the economy and taking a cue from Prime Minister Manmohan Singh's remarks, Planning Commission deputy chairman Montek Singh Ahluwalia on Thursday said any extraordinary steps to contain inflation may prove counter-productive.
"One should not look for instant results and very quick steps may result in damages," Ahluwalia said when asked whether the economy was overheating.
Avoiding a direct reply, Ahluwalia said that the government had taken several steps to check price rise and it would take some time before the results are visible.
The prime minister had played down the fears of overheating in the economy as expressed by Ahluwalia a day before.
Inflation continues to rule above 6 per cent after presentation of the Budget and the steps taken by the government to contain it.
The Reserve Bank of India has tightened the money supply while the government reduced customs duty on a number of raw materials.
Besides, the government has allowed duty free import of wheat and is trying to convince the cement makers to roll back the price hike announced after the Budget.
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