RBI Governor expresses satisfaction over inflation rate

Mumbai, Jan 5 (UNI) Reserve Bank of India (RBI) Governor Dr Y V Reddy today expressed his satisfaction over the inflation rate existing in the country and stressed that the growth of the Indian economy was going strong at present.

Talking to media on the sidelines of the fourth convocation ceremony of Indira Gandhi Institute of Developmental Research (IGIDR) here, Mr Reddy said ''The inflation is on the expected lines. Also, the growth of the Indian economy is strong and it would stick to its present level for some more time in future.'' The RBI Governor's statement assumes significance at a time when the Central bank was busy preparing the review report for the Indian economy for the third quarter, which would be unveiled on January 31.

He said he will come up with a detailed report on the subject during the third quarter's review.

Commenting on the liquidity in the Indian economy, he said it was fairly non-disruptive and non-volatile. The resilience in the Indian economy has increased. Dr Reddy, who is also the president of the Institute, presided over the convocation ceremony.

Earlier, ICICI Bank chairman N Vaghul, in his convocation address, talked about the current growth rate of the Indian economy and its feasibility of sustaining the rate in future too.

He said the country's manufacturing sector was at its boom and various infrastructural projects were being undertaken in different parts of the country, which will help sustain the present growth rate the country's economy is witnessing today.

However, he pointed out that the manufacturing sector is likely to face manpower shortage in future.

He presented four PhD, 13 MPhil and 17 MSc degrees to the students of the Institute on the occasion.

Informing about various projects being undertaken by the Institute, its Director Dr R Radhakrishnan said ''IGIDR, together with UNDP, has initiated a major research programme on strengthening state plans for human development. The project is supported by the Planning Commission. More than half a dozen state governments are being assisted in their efforts for strengthening human development in their states.'' UNI