New Delhi, Nov 18 : Deputy Chairman of Planning Commission Dr. Montek Singh Ahluwalia has said that inflation is not a problem in India currently.
Speaking at a seminar jointly organized by the World Economic Forum and the Confederation of Indian Industry (CII) in New Delhi, he said with the global economic slowdown, inflation is not going to be a problem in India and recent changes in monetary policy reflects this outlook.
Dr. Ahluwalia expressed his optimism over the recently concluded G20 meeting in Washington.
He said there was complete unanimity among the participating countries on the need for a co-ordinated fiscal stimulus. The fact that the group had agreed to meet again in April means that the new administration in the US would be involved in the action plan.
He said that while regulatory changes would be implemented at the national level, global bodies could be tasked with oversight.
Dr. Ahluwalia also talked about providing a counter-cyclical fiscal stimulus to the economy and said government should step up its investment in infrastructure.
He said that all indications are that the GDP growth in India in 2009-10 would be better than in 2008-09 and reassured that the government is watching the situation closely and would not hesitate to bring in more measures if the need arises.
He said that normalcy in markets would return only when the people are confident that no further collapse in the financial system is likely.
He said the focus of government is on the real economy. Improvements in the real economy will impact investors' decision. Dr. Ahluwalia also hoped that there won't be any job losses in the economy as a whole.
James H Quigley, Global Chief Executive Officer, Deloitte, USA talked about the need to restore confidence in the world economy.
He said the confidence provided by the G20 combined with the fiscal stimulus by individual countries would be very helpful for the world economy.