Thursday 24 April 2014
News updated at 8:36 AM IST
Weather
Max: 0°C
Min : 0°C
In Bangalore
Sunny day
Breaking News

No definite correlation between growth and inflation: Govt

New Delhi, May 5, 2013 (PTI)
File image Reuters

Allaying apprehensions that when the country's economy enters the growth trajectory of over 7 per cent it will lead to higher inflation, the government has said there need not be a correlation between the two.

"...high growth of GDP of 9.3 per cent and 8.6 per cent in the years 2007-08 and 2009-10, respectively have been witnessed with lower rate of inflation," Planning Minister Rajeev Shukla has said in a written reply to the Rajya Sabha.

"Therefore it in not necessary that if the growth rate of GDP is beyond 7 per cent, the rate of inflation will also rise," he added.


The minister was replying to a question asked by Deputy Leader of BJP in the Rajya Sabha, Ravi Shankar Prasad.

He asked: "Whether it is a fact that with annual growth rate of GDP going beyond 7 per cent, the rate of inflation in the country is also apprehended to rise?"

The minister's statement revealed that the inflation was 4.74 per cent in 2007-08, when economy grew at a rate of 9.3 per cent. Also, the rate of price rise based on Wholesale Price Index was 3.8 per cent in 2009-10 when GDP grew at 8.6 per cent.
However, the statement also revealed that inflation was 9.56 per cent in 2010-11, when the economy grew by 9.3 per cent; and 8.05 per cent in 2008-09, when the economy grew at 6.7 per cent.

Further, the inflation was 8.94 per cent in 2011-12 when economy grew at 6.2 per cent, and 7.35 per cent when the GDP expanded at 5 per cent.

The minister also said: "The increase in the rate of inflation does affect the lives of the majority of the people by reducing the purchasing power.

"The government and Reserve Bank of India have undertaken several fiscal, administrative and monetary measures in order to control inflation. As a result of these measures, the rate of inflation (WPI) has declined to 5.96 per cent in March 2013, the lower level in the last three years."

Go to Top

Photo Gallery
A woman with her son watches from a window the election campaign rally of National Conference...

A woman with her son watches from a window the election campaign rally of National Conference...

People get their face painted to create awareness on importance of voting in Mumbai on Wednesday...

People get their face painted to create awareness on importance of voting in Mumbai on Wednesday...

Girls display placards to create awareness on voting in Guwahati on Wednesday. PTI Photo

Girls display placards to create awareness on voting in Guwahati on Wednesday. PTI Photo

Artists make paintings of Sachin Tendulkar to wish him on the eve of his birthday in Moradabad...

Artists make paintings of Sachin Tendulkar to wish him on the eve of his birthday in Moradabad...

Police personnel ride a 'jugaad' on their way to polling booths on the eve of Lok Sabha elections...

Police personnel ride a 'jugaad' on their way to polling booths on the eve of Lok Sabha elections...

Girls learn martial arts during a self defense training camp in Faridabad on Wednesday. PTI Photo

Girls learn martial arts during a self defense training camp in Faridabad on Wednesday. PTI Photo

A woman voter showing inked finger to her children during repolling at a polling booth in Kochi...

A woman voter showing inked finger to her children during repolling at a polling booth in Kochi...

A honeybee caught feeding on nectar in ...

A honeybee caught feeding on nectar in ...

Models walk the ramp displaying jewellery during a fashion show in Chandigarh on Wednesday...

Models walk the ramp displaying jewellery during a fashion show in Chandigarh on Wednesday...

Devotees pray and take dip on the banks of the river Ganges, in Varanasi. AP Photo

Devotees pray and take dip on the banks of the river Ganges, in Varanasi. AP Photo

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523