"...it would be possible for us to maintain the inflation at a reasonable level, moderate level," Mukherjee said, while replying to debate on the Finance Bill in Rajya Sabha.
He further said the Centre and the states have to work collectively to remove supply bottlenecks, a move to tame inflation.
"...some of them (members) have suggested for the amendment of the relevant state laws so that the new entrants can come into the regulated market. We have taken up with the state governments and we shall have to collectively work to see how these supply bottlenecks can be removed," he added.
Mukherjee said the government has to strike a balance between the requirement of the industry for growth, while controlling the inflationary pressures. Food inflation crept back into double digits at 10.05 per cent for the week ended March 12, breaking a three-week long downward spiral. Meanwhile, overall inflation in February this year was 8.31 per cent.
The government has taken several steps such as banning exports of certain items like wheat and reducing or eliminating duties on some products to increase their availability in the domestic markets.
The Reserve Bank of India, on its part, has revised key-policy rates eight times since March, 2010 to tame inflation.
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