The Indian economy is not overheated and has the capacity to absorb 8 to 9% growth for a long period, provided the supply side is managed well and domestic savings are encouraged, an Assocham survey has said.According to the Assocham Business Barometer (ABB), 74% of the 280 CEOs and CMDs surveyed from different segments of industry believed it would be far-fetched to conclude that the economy was stretched.However, 69% respondents said a continuous caution was required to maintain macro-economic stability so as to maintain pick-up in investment and growth on a sustained basis.While inflation remained an area of concern for the government and the policy-makers, the root of the inflationary problem lies in the hardening of primary commodity prices.The contribution of the primary articles with a weight of 22.03% in the WPI basket was 28.8% in the 34 weeks until November 18. Major contribution to inflation was made by cereals; pulses; potatoes, milk, condiments and spices and minerals, the chamber said.Over 88% of the respondents said in the short-term, the supply of the primary products could be augmented by measures like reduction in customs duty and improving production of these essential commodities by giving a boost to agriculture.However, 21% of the respondents did express fear of the economy getting overheated. They argued that besides the mounting problem of inflation, the mismatch between investments and savings could lead to the problem of overheating.