Increase supplies to contain rising inflation: PM

New Delhi, Feb 4: Expressing serious concern over the increasing inflation, Prime Minister Manmohan Singh has asked the industry to resist from raising prices of essential commodities and manufactured products and rather concentrate to enhance their supplies to narrow down the supply-demand mismatch to tame inflation.

For the week ended January 20, the inflation rate stood at 6.11 per cent on account of higher prices of manufactured products and foods.

While interacting with the Assocham delegation headed by Senior Vice President Sajjan Jindal here today, Dr Singh said, ''Government would not interfere in the current growth momentum and on the contrary ensure carrying forward its reform agenda by making reforms fully irreversible.'' The Prime Minister asked the Indian industry to hasten the process of adding on to their capacities to strengthen supplies so that its mismatch with demand is narrowed down.

Categorically asserting that reforms are irreversible, Dr Singh, however, added that the government was equally worried on the inflation front as it is adversely affecting the poor and therefore the industry should come forward to help government in this regard by enhancing supplies of manufactured and essential commodities.

Dr Singh expressed happiness that the investment rate was picking up at 34 per cent and savings rate likely to exceed 32 per cent and hoped that the international oil prices would soften further to tame inflation.

However, the Prime Minister also expressed concern over the rising cement prices and advised Mr Jindal to interact with its representatives and persuade them to bring it down.

Responding to the suggestions of Mr Jindal for discouraging iron ore exports and rather strengthening the base for the domestic steel industry, the Prime Minister said the issues would be examined in the best interest of domestic industry.

The PM said he saw every reason that the Indian economy would continue with its growth momentum which will further accelerate as the reform process will be further taken towards logical conclusion unless unforeseen external as well as internal circumstances govern us adversely.

Mr Jindal suggested Assocham is optimistic to attain 10 per cent growth which will be maintained at consistence level of 10-12 per cent per year and particularly during the 11th plan period, the manufacturing will register a growth rate of 15 per cent with agricultural growth going up to over six per cent.

UNI

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