The Reserve Bank of India on Friday said that “inflation versus growth” is not a debate as long-term high growth is directly co-related with low inflation. “When it comes to choosing between short term trade-off between inflation and growth, and long-term growth prospects, it is important to control the risk of spiralling inflation,” Subir Gokarn, Deputy Governor, RBI said in Delhi today at a conference organised by the Confederation of Indian Industry (CII). “It is the mandate of the RBI to take steps to control inflation,” he said. The government can only facilitate the process to help it (inflation) come down by taking some supply side measures. Gokarn said that the failure of the growth strategy lay in the inability to transition the workforce from low productivity areas to high productivity areas. “If we can’t achieve this transition, then labour force is dependent on a shrinking source of income in the economy,” he said. The major hurdles to this transition lay in infrastructure, skill development and the non-existence of a security net for labour.
IE
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