He said the government will have to use all instruments, including monetary and fiscal measures, to ensure "credible price behaviour" and ensure steady flow of investments to prevent any adverse impact of the economic crisis in Europe on India.
Noting that the 12th Five Year Plan has the targetted economic growth of about 9 per cent, Singh said "it is difficult in the present world situation" but he believed it is achievable if more emphasis is laid on development of infrastructure, health and skill development.
Talking about inflation, he said the meeting he had held last Saturday with top officials, including Planning Commission Deputy Chairman Montek Singh Ahluwalia, RBI Governor Subbarao and PMEAC C Rangarajan was aimed at discussing steps that could be taken to check price rise. "The purpose of that meeting was to explore ways and means of how we can bring about a moderation in the rate of inflation," he told journalists accompanying him back home from Pretoria after a three-day visit.
The purpose of that meeting was to "understand from the experts in the Government of India the various forces which are at work, which have been fuelling inflation, and how we can bring inflation under control," the economist-Prime Minister said.
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