The Hindu Business Line : Inflation vs growth

The Government and the RBI must deal with the present situation carefully. Both economic and monetary policies have to be very carefully crafted. Credit outgo should be encouraged by softening interest rates.

Productivity, especially in the agriculture sector, should be increased. Export of food articles and edible oils should be banned.

Public distribution system should be widened to cover more commodities. Futures trading in agricultural products should be banned and the situation should be kept under close watch.

T.R. Anandan, Coimbatore

The Indian economy, to a great extent, is influenced by the economic slowdown in the US. The inflation, which touched 7 per cent last week, is not a good news.

Actually the fear of US recession, higher inflation and appreciating rupee are the key negative factors. The fear of recession will soon disappear, as we have all seen what had happened in the aftermath of 9/11 attack?

The GDP growth of 8-9 per cent achieved by India and the overall productivity data show that the Indian economy is in strong footing. So whatever be the inflation, it will not affect the growth of the economy. The industrial data proves that the Indian economy has the potential to sustain the growth.

Nijo Francis, Thiruvananthapuram

It is generally feared that the high inflation would harm the growth. In the past, we have seen inflation touching 13 per cent without affecting the growth of the economy.

Inflation is just an indicator of the purchasing power of the rupee and it shows how much it has deteriorated/increased over the week, with respect to previous year on a week-to-week basis. Inflation would do no harm to the growth of the economy and its impact is expected to be only negligible.

R. Swaminathan,

Coimbatore

Though the inflation and growth are related, one need not impact the other. So what we need to do is to get to the roots of inflation to prevent it from rising.

A. Jacob Sahayam, Thiruvananthapuram

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