India can keep nine percent gross domestic product (GDP) growth rate in medium term with added efforts despite soaring international oil prices, said the Indian Planning Commission Deputy Chairman Montek Singh Ahluwalia on NDTV Tuesday.
"I believe that the nine percent growth rate that we are talking about for the Indian economy can be maintained even with present level of oil prices," Ahluwalia said.
On how the oil prices will impact the growth rate, Ahluwalia said whether it will impact growth or not will depend on how India handles oil prices.
"It is possible to handle the oil price situation without hurting the confidence of investors in the economy in the medium term," he added,
Despite that rising inflation, which has hit 11.5 percent, is a serious problem, Ahluwalia said that there is no reason to change the medium term objective.
However, he said that the task of achieving high growth becomes more difficult because the actions to manage oil prices, pass on oil prices, improve efficiency, reduce dependence on oil and look for other sources of energy become more important.
He pointed out that it is difficult to say what will happen in the next three to six months, but the growth momentum can be maintained even with current level of oil prices.
"Soaring oil prices have pushed the inflation rate to more than 11 percent and the Reserve Bank of India is expected to announce more measures to tighten monetary policy to check rising prices," said the deputy chairman.
Source: Xinhua
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