The Hindu Business Line : Montek lauds anti-inflation measures as ‘bold’

Mr Anwarul Hoda, Chairman, High Level Group on Service Sector, presenting the committee's report to Mr Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, in the Capital on Wednesday. - Ramesh Sharma

Our Bureau

New Delhi, April 2

The Planning Commission’s Deputy Chairman, Mr Montek Singh Ahluwalia, on Wednesday described the anti-inflation measures of bringing down import duty to zero on crude edible oils and other steps such as banning export of non-basmati rice to get over supply constraints on essential items as “bold”.

Talking to media on the sidelines of a high-level group on services sector’s report release, the Plan panel Deputy Chairman said, “no doubt they are right measures and they would help in containing inflation”. He said the prices of edible oils have started coming down. “I am very sure that we will be able to bring it under control,” he added.

Mr Ahluwalia said that inflation was a global phenomenon and “every country in the world is facing an upsurge in inflation. Chinese inflation is about 9 per cent and is much worse than ours.” He further said that inflation requires continuous monitoring and the Finance Ministry was looking at it closely.

On the issue of fee hike by management institutes, Mr Ahluwalia held that easy loans should be facilitated to make education more affordable in these institutes. “Any student getting into IIMs should be able to finance his education through a loan,” he said, adding that he was told that the institutes have also put in place generous scholarships.

The high-level group on services sector, headed by the Planning Commission Member, Mr Anwarul Hoda, has comprehensively scanned the different aspects swaying the performance of the services sector and suggested both short-term and long-term policy measures.

In the education sector, it maintained that while giving freedom to the private sector institutions in respect of fees for higher education, it would be important to ensure that they provide scholarship and free-ships to an adequate number of meritorious students.

On physical infrastructure, it singled out as of particular importance in the services sector the quality of urban infrastructure, including sewerage, drainage, water supply, solid wastes management and urban transportation.

On tourism services, it said the Centre should either bring aviation turbine fuel within the definition of ‘declared goods’ or the States should be persuaded to adopt the standard VAT rate of 12.5 per cent. The Group has also made a slew of recommendations on the shipping services and healthcare services.

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