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July 17, 2008 11:34 IST
India needs to control inflation if necessary through conservative policies, said MD and CEO ICICI Bank [Get Quote], K V Kamath, in Hyderabad on Wednesday.
"While there was no panic situation, but we still have to take serious measures in bringing down the inflation rate", he told reporters on the sidelines of two-day CII National Council Meeting.
Kamath, who is also CII President, said despite the inflation, the growth rate continued to rise in various sectors.
He said decisions should be taken on global contest to further strengthen the economy.
The CII perception of Indian economy is strong as incremental capital-output ratio at 4-fares is better than China and Brazil, he said.
Similarly, domestic consumption is strong at 67 per cent of GDP in 07-08 while export performance graph has also shown a remarkabe growth at 20 per cent which resulted in foreign exchange reserves at $312 billion, Kamath said.
The CII chairman said the country's monetary policy has to be relooked and it should be conducive to the growth.
The challenges in meeting the agriculture needs, rising prices and among all the oil factor would put further pressure on current account deficit, Kamath said.
However, the CII Business outlook survey reveals increase in investment in 08-09 and 73 percent growth in productin, 63 percent increase in exports and 83 per cent increase in raw material costs due to manufacturing inflation, Kamath said, adding the outlook for GDP growth at 8 per cent plus in 08-09.
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