Prime Minister's economic adviser C Rangarajan today said India can grow at nine per cent on sustained basis, even as he expressed concern over inflation nearing double-digit mark.
"We can sustain a growth rate of 9 per cent...We have done enough reform to sustain a 9 per cent growth rate. It is possible with 36 per cent savings rate," Prime Minister's Economic Advisory Council (PMEAC) Chairman Rangarajan said at a SKOCH seminar.
After growing at over 9 per cent in the three preceding years, India's GDP slipped to 6.7 per cent in the last fiscal.
However, with three stimulus packages to prop up the economy, the Central Statistical Organisation has pegged the growth rate at 7.2 per cent in its advance estimates.
Rangarajan added that inflation is an area of concern.
"One area of concern is inflation... We thought we (had) banish double-digit inflation. But it has come back to haunt us," he added.
Rangarajan said that food inflation is disproportionate to the decline in agriculture as there are other reasons responsible for high food prices.
Inflation rose to 9.89 per cent for February compared to 8.56 per cent in the previous month.
Food inflation, even though it declined from 17.81 per cent in the last week of February, it still stood at an elevated level of 16.30 per cent for the first week of March.
Rangarajan stressed the need to focus on increasing agriculture output and improving infrastructure, especially power, adding that what China adds in one year, India adds in five years.
