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'India to sustain high growth'

March 16, 2005 18:19 IST
Source:PTI

Indian economy has the resilience to sustain high growth despite shocks like spiralling oil prices, economic affairs secretary Rakesh Mohan said on Wednesday.

"The growth momentum in the economy is going to be sustained... I think, one thing that is shown by the Indian economy and the macro management is the sustained growth momentum despite the shocks," Mohan said on the sidelines of a Confederation of Indian industry conference in New Delhi.

Central statistical organisation estimates GDP growth at 6.9 per cent this fiscal, while the Common Minimum Programme has projected an average economic growth of 7-8 per cent for the Tenth Plan period.

Although crude oil prices have spiralled up to $53 a barrel in international markets, he said, "our prices have not changed."

He declined to comment on whether there was any pressure on domestic prices due to surge in global crude price.

Finance ministry expects inflation to remain below 5 per cent by the end of this fiscal.     Inflation based on whole-sale prices was at 4.95 per cent for week-ended February 26, a marginal increase from 4.83 per cent in previous week.

On the recently concluded finance secretaries meeting of G-20 nations, he said, "There was not much discussion on oil prices. Discussions were held on the global imbalances due to US trade deficits."

The G-20 secretaries also discussed how the focus of two Bretonwood institutions -- World Bank and International Monetary Fund -- should change with the changing economic scenario.
Source: PTI
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