Combating inflation, pushing reforms top priority: President

Posted By: Pti
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New Delhi, Feb 21 (PTI) Combating inflation andsustaining growth momentum may be the top priority, but thegovernment today said it would strive to push economic reformsto encourage foreign and private sector investments in theeconomy.

"The Indian economy continues to be on a trajectory ofhigh growth despite an adverse global environment... However,there is no room for complacency," President Pratibha Patilsaid in her address to Parliament that marked beginning of theBudget session.

The top priority of the government, she said, wouldinclude combating high prices especially of food items andsustaining momentum of economic growth.

To achieve this twin objective, she said "we havestrived to make the domestic environment more conducive toinvestment, encouraging public as well as private investment,and domestic as well as foreign investment, particularly FDI.

"We have to maintain the momentum for reforms on awide front," Patil said.

Referring to the high inflation during the past oneyear, the President said "my government is deeply concernedover the adverse impact of inflation on the aam aadmi (commonman) and the threat it poses to the growth momentum."

While the food inflation had touched 18.32 per cent inDecember, 2010 before moderating to over 11 per cent thismonth, the overall inflation still hovers above eight per centas against the comfort level of 5-6 per cent.

The economic growth, however, is expected to be 8.6per cent for the current fiscal, up from eight per cent a yearago. .

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