New Delhi: Union Finance Minister P Chidambaram on Monday took his war on inflation to the industry hub, telling industrialists not to raise prices of their products and help the government fight inflation.
"Corporate profits in the year up to March 2008 are likely to be good," the Finance Minister said and claimed that he saw no obstacles to high economic growth in the next fiscal year.
"Gross domestic product is expected to grow by an annual 9.2 per cent during 2006-07, powered by a robust expansion of manufacturing and services sectors," Chidambaram said.
Addressing a conference of industry representatives, Chidambaram said: "We have taken fiscal and monetary steps. We have taken steps on the supply side. We are confident we can moderate inflation."
But with high growth, India is seeing upward pressure on the prices with inflation hovering above an annual rate of 6 per cent in the week ended February 17, down from a two-year high hit earlier in the month.
The Finance Minister told the industrialists that short-term corporate profits should not be placed above the longer term goal of price stability, which is vital for a sound economy.
"We owe our duty to the people to hold the price line," he said, asking industrialists not to raise product prices. He added the government would like to moderate tax rates in the years to come.
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