“We are targeting 9 per cent growth in the medium term, and getting up to 10 percent,” Mr Ahluwalia told reporters on the sidelines of a function here.

Mr Ahluwalia termed the target “quite achievable”, saying it “may look ambitious with a slowdown in the global economy, but is achievable in the medium term”.

He said the problem of inflation was short term and would moderate in due course, as the government has taken several monetary and administrative measures to rein in inflation.

Need for patience
“Inflation will moderate. Let’s have patience,” Ahluwalia said. India’s annual rate of inflation touched a 13-year high of 12.44 percent for the week ended August 2.

The Prime Minister’s Economic Advisory Council (EAC), in its “Economic Outlook Report 2008-09”, has predicted a 7.7 percent economic growth in the current fiscal, as compared to 9.1 percent last fiscal.

Former Reserve Bank of India (RBI) Governor C. Rangarajan, who released the EAC’s economic outlook report here Aug 13, had said inflation would moderate to 8-9 percent by March 2009.

“It will not be big surprise if growth will be slightly lower than what was forecast eight months ago,” he said, adding that in the medium term, “it (fast growth) is eminently feasible.”