Patna, Oct 16: Stressing on the need for reducing the inflation rate substantially, Chairman of Special Task Force on Bihar S C Jha asserted that India would not be able to emerge as a world economic power unless the rise in prices is controlled.
Addressing a seminar at Chandragupta Institute of Management, Mr Jha who is a former director of the Asian Development Bank, said India will have to control inflation for its economic growth.
He suggested to increase the growth rate to 10 per cent and for economic prosperity of the country the infaltion rate should be reduced to single digits.
With its skilled manpower, the country had the potential to emerge as a world economic power, Mr Jha mentioned in his deliberations in the seminar that concluded here yesterday.
He also observed that the Centre should have avoided implementation of the Sixth Pay Revision Committee recommendations this year in order to curb the inflation rate.
Pointing towards the ongoing crisis in financial sector globally, he said it was all due to the faulty economic policy of the US, the economy of which was showing steep decline as it has not been performing well for quite sometime. The growth rate there had been registered alarmingly at one to two per cent.
The European economy was also affected due to liberal sanctioning of loans at very low interest rate. He, however, said the situation in India was better than that of Latin America and Africa.
Highlighting the potential of Bihar in economic development of the nation, the institute's director V Mukunda Das said with vast agricultural potential, the state should emerge as a major hub of fruit and vegetables market at national and international level.
He further mentioned that Bihar should develop a sound river basin system as the rivers flowing in the state had different characteristics.