India’s Inflation Remains ‘High and Stubborn’: Subbarao

India’s central bank Governor Duvvuri Subbarao comments on inflation and the outlook for economic growth at a speech at the Indian Institute of Technology in New Delhi today.

Inflation is currently just below 7 percent, while economic growth is estimated at 5 percent in 2012-2013, the weakest pace in a decade, the statistics agency forecasts.

“Inflation is still high and stubborn, the balance of payments is under stress.

‘‘Investment most worrying is in decline. A decline in investment is a worry because today’s investment is tomorrow’s production capacity.

‘‘Has the world lost confidence in India? When will we reach double digits and what should we be doing to get there? My short answer to all those questions is that the India growth story is still intact. We can get on track to double digit growth.

‘‘I also want to say that India’s growth story is not inevitable. There is no concrete rule that India should grow in double digits. We can only achieve growth and improve ourselves by not just implementing economic reforms but governance reforms in all sectors of the economy.’’

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