'High growth needs to be sustained for 10-15 yrs'

An elated Finance Minister P Chidambaram today said that India has the capacity to sustain a high growth rate.

"The time has come to shed lingering doubts about the sustainability of high growth and skepticism about the shift to a higher growth trajectory," he told reporters after official figures showed the Indian economy grew at the fastest pace in 18 years to 9.4% in 2006-07.

High growth witnessed in the three years of the United Progressive Alliance government needs to be sustained with utmost care -- because that is the way forward to eradicate poverty, generate quality jobs and improve human development indicators, he said.

"It is in the larger interest of India that we maintain high growth for 10-15 years," he said, adding that the government will increase its efforts to make growth more inclusive.

Chidambaram, however, cautioned that high growth puts pressure on prices unless supply is augmented.

"High growth leads to high demand and high demand does put presure on prices. Unless supplies cath up with demand, there will be some pressure on prices," he said.