Concerned over recent rise in prices, Prime Minister Manmohan Singh today said his government is taking "determined measures" to control inflation but cautioned against steps that can hurt growth which must go at least up to 10 per cent.
Addressing the nation from the ramparts of historic Red Fort on 62nd Independence Day, the Prime Minister said while the country has emerged among the fastest growing economies, it faces a challenge of inflation.
"I know how much each one of you is concerned about the recent rise in prices... We are taking determined measures to bring prices under reasonable control," Singh said.
He, however, cautioned against steps to control inflation which can hurt economic growth that has maintained a rate of nine per cent for the last four years.
"Our economy must grow at the rate of at least 10 per cent every year to get rid of poverty and generate employment for all," he said. Singh shared his ambition of double digit growth two days after his Economic Advisory Council lowered the GDP projection to 7.7 per cent for 2008-09.
Stressing that the government has given a "new deal to rural India", Singh said the stagnation in agriculture, especially from 1998-2004 (the period of NDA rule), has given way to revival of the farm sector.
"After almost a decade of stagnation, especially from 1998 to 2004, investment in agriculture is increasing and there has been a revival in this area," he said.
