Some inflationary pressure is a natural corollary: IACC

New Delhi, Jan 31 (UNI) Some inflationary pressure is a natural corollary to the economic growth of over nine per cent, which the country is witnessing, Indo-American Chamber of Commerce (IACC) said today.

''It is important to strike a judicious balance between growth and development triggered inflation to consolidate the growth process in the medium and long term,'' IACC President Deepak Pahwa said.

The chamber expressed concerns about rising inflation but remained optimistic about the current growth trajectory of the Indian economy, which was unprecendented, marked by impressive growth in exports, invisibles and accumulation of foreign exchange reserves.

The effort should be to achieve a low-cost economic paradigm to enhance India's competitive edge and interest rates should come down to make the cost of capital internationally competitive, Mr Pahwa said.

He said wherever shortages are felt, immediate steps should be taken to import the goods, and that is a rational option given the comfortable foreign exchange reserves.

''This requires a proactive tooling of the macro and monetary policies and downward revision of all variables that pushes up the cost,'' he added.

UNI