06-21-2008, 08:04 PM
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Govt has lost control on prices, says industry </b>
Pioneer News Service | New Delhi
The Indian industry chambers have expressed great concern over inflation reaching the double-digit level, saying that managing it has gone beyond the Government's control.
<b>Top chambers like the CII, FICCI and Assocham on Friday said inflation touching a 13-year high of 11.05 per cent had reached the concern zone and was posing a major threat to growth.</b>
"Inflation is not only a concern for the Government but also for the industry... Many things seem to have gone beyond its (the Government's) hands," Assocham said in a statement.
<b>"At 11.05 per cent growth in WPI for the week ending June 7, 2008, inflation is reaching the concern zone," </b>said CII president KV Kamath.
A CII release also stated that the double-digit inflation was a <b>"threat to the growth prospects" of the country and posed a "huge challenge" to the Government. "The current level of inflation reduces the space for fiscal and monetary policy manoeuvrability,"</b> the release added.
The Indian economy has been growing at an average of over 8.5 per cent for the last four years. It was accompanied by a moderate inflation for the last three years. But it started rising since February this year.
FCCI said maintaining the GDP growth would be a serious challenge before the Government and the prospects of strong economic growth as seen in the past would certainly take a hit. However, the chamber added that following the recent increase in the prices of petrol and diesel, such an increase in the rate of inflation was anticipated.
Out-of-the-box solutions are required to be explored and the industry would be happy to work with the Government in containing inflation and ensuring that the growth momentum of the economy was not seriously damaged, said the CII release.
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This is when so called self proclaimed Finance experts are ruling country. <!--emo&
--><img src='style_emoticons/<#EMO_DIR#>/biggrin.gif' border='0' style='vertical-align:middle' alt='biggrin.gif' /><!--endemo-->
They could have fixed or reduced this problem long time back, but spinesless don't have spine to make decisions.
Pioneer News Service | New Delhi
The Indian industry chambers have expressed great concern over inflation reaching the double-digit level, saying that managing it has gone beyond the Government's control.
<b>Top chambers like the CII, FICCI and Assocham on Friday said inflation touching a 13-year high of 11.05 per cent had reached the concern zone and was posing a major threat to growth.</b>
"Inflation is not only a concern for the Government but also for the industry... Many things seem to have gone beyond its (the Government's) hands," Assocham said in a statement.
<b>"At 11.05 per cent growth in WPI for the week ending June 7, 2008, inflation is reaching the concern zone," </b>said CII president KV Kamath.
A CII release also stated that the double-digit inflation was a <b>"threat to the growth prospects" of the country and posed a "huge challenge" to the Government. "The current level of inflation reduces the space for fiscal and monetary policy manoeuvrability,"</b> the release added.
The Indian economy has been growing at an average of over 8.5 per cent for the last four years. It was accompanied by a moderate inflation for the last three years. But it started rising since February this year.
FCCI said maintaining the GDP growth would be a serious challenge before the Government and the prospects of strong economic growth as seen in the past would certainly take a hit. However, the chamber added that following the recent increase in the prices of petrol and diesel, such an increase in the rate of inflation was anticipated.
Out-of-the-box solutions are required to be explored and the industry would be happy to work with the Government in containing inflation and ensuring that the growth momentum of the economy was not seriously damaged, said the CII release.
<!--QuoteEnd--><!--QuoteEEnd-->
This is when so called self proclaimed Finance experts are ruling country. <!--emo&
--><img src='style_emoticons/<#EMO_DIR#>/biggrin.gif' border='0' style='vertical-align:middle' alt='biggrin.gif' /><!--endemo--> They could have fixed or reduced this problem long time back, but spinesless don't have spine to make decisions.