Singh also made it clear that following populist fiscal policies for long harmed the economy, two days after key UPA allies Trinamool Congress and DMK made a strong pitch for the roll back.
"Any increase in prices does hurt some people, but we have to take a long-term view," he told reporters accompanying him on his way back home from Saudi Arabia when asked about growing concerns over the recent hike in oil prices and the ripple that it may have. The direct effect on the Wholesale Price Index will be no more than 0.40 per cent, he said.
Touching upon Indo-Pak issues, Singh said he had asked Saudi Arabia to use its "good offices" to persuade Pakistan to desist from the path of terror.
Singh was asked whether India would like to see Saudi Arabia as a credible interlocutor in dealing with some Indo-Pak issues against the backdrop of remarks made by Minister of State for External Affairs Shashi Tharoor in this regard that triggered a controversy
"I know Saudi Arabia has close relations with Pakistan," Singh said, noting that he had discussed Indo-Pak relations with King Abdullah on a one-to-one basis and explained to him the role that terrorism aided, abetted and inspired by Pakistan is playing in India.
"I did not ask him to do anything other than to use his good offices to persuade Pakistan to desist from this path," he said.
Earlier in the day in Riyadh, Singh said India is willing to walk the "extra mile" to open a new chapter in relations with Pakistan provided it acted decisively against terrorism.
