India has been successful in bringing down inflation and the government will continue to pursue policies to ensure economic stability as risks remain, its chief economic adviser said on Friday.
"I always maintain that macroeconomic balance in a country is dependent on the pursuit of successful policies," Ashok Lahiri told Reuters in an interview.
Since we are a vibrant democracy the government will continue to focus on maintaining macroeconomic stability, of which inflation is a prime indicator."
But he said some risks -- such as high global crude oil and food prices -- remained and the government was keeping a strict watch on domestic food prices.
"So food prices, food supply in the world as a whole, have to be watched very carefully particularly in a large country like India," said Lahiri, who will soon join the Asian Development Bank in Manila as executive director for India.
He said India would be cautious in its approach to capital account convertibility, and much would depend on the international situation.
"I think capital account liberalisation will continue to be characterised by a fair amount of caution," said Lahiri, who has spent nearly five years as chief economic adviser under three different finance ministers.
"I expect gradualism. I mean India never had a revolution. If you are expecting revolution in this country, that goes against the grain of the Indian psyche ... We are evolutionaries."
http://www.financialexpress.com/latest_full_story.php?content_id=169956
"I always maintain that macroeconomic balance in a country is dependent on the pursuit of successful policies," Ashok Lahiri told Reuters in an interview.
Since we are a vibrant democracy the government will continue to focus on maintaining macroeconomic stability, of which inflation is a prime indicator."
But he said some risks -- such as high global crude oil and food prices -- remained and the government was keeping a strict watch on domestic food prices.
"So food prices, food supply in the world as a whole, have to be watched very carefully particularly in a large country like India," said Lahiri, who will soon join the Asian Development Bank in Manila as executive director for India.
He said India would be cautious in its approach to capital account convertibility, and much would depend on the international situation.
"I think capital account liberalisation will continue to be characterised by a fair amount of caution," said Lahiri, who has spent nearly five years as chief economic adviser under three different finance ministers.
"I expect gradualism. I mean India never had a revolution. If you are expecting revolution in this country, that goes against the grain of the Indian psyche ... We are evolutionaries."
http://www.financialexpress.com/latest_full_story.php?content_id=169956