Jaswant stands by inflation target

Finance Minister Jaswant Singh said the inflation rate of 4.5-4.8 per cent targeted for the current fiscal year (2003-04) would be achieved on account of several measures taken by the government recently.

"We still continue to stand by the figures (4.5-4.8 percent) put out by the Reserve Bank of India (RBI) and the finance ministry. We will achieve it by the end of the current fiscal as we have taken a number of measures to rein in inflation. We are confident that it will decline from the current rate of 5.6-5.8 per cent to the projected target," he said. Singh was speaking to the media on the sidelines of the 'Intellectuals Meet' organised by the BJP.

According to Singh, the steps taken to bring down inflation further include arresting steel prices and the decision to release more sugar in the market to check a rise in its price.

"As steel is one of the important raw materials for the growth of several sectors such as infrastructure, housing and manufacturing, the finance ministry had to step in to ensure its prices are brought under control. In view of the volatility in international steel prices during the last eight months, the government has been keeping a close watch on its movements. We have been taking measures from time to time to revive the sector," he said.

"With steel being the basic infrastructure industry, there cannot be a 'India on the move' without a dynamic and growth-oriented steel industry. Internationally, steel prices have shown volatility due to the increase in costs of its input, such as metcoke, after China cut its production. With the rising cost of such imports to steel producers, the government had to initiate strong measures to regulate the price, as we cannot allow it to rise further," Singh added.

On rising sugar prices, Jaswant said the government had decided to release more stocks in the market to check its rise.