With 20 percent shortfall in rain in India, RBI Governor D Subbarao expressed worries as some commodities may get affected. Rain shortfall in parts of Karnataka, interior Gujarat and Rajasthan could add pressure on oil seeds and pluses. While, Kerala has reported a rainfall shortage of about 40 percent compared to previous year.
Responding against criticism that RBI is not able to control inflation, he pointed out that through tightening monetary policy it has successfully brought down the inflation rate from 11 percent to the present level of 7.3 percent and expressed its confidence to bring down the number further.
RBI also confirmed that the situation is less severe compared to 1991 situation and pointed that it has taken various steps to strengthen the Indian currency against dollars. India is aiming to grow at 10 percent rate for the next 15 years by supporting investment sentiments, removing infrastructure bottlenecks and through fiscal consolidation, he added.
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