March 1, 2011 1:58 PM

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Govt expresses concern over rising price of crude in global markets

The government today expressed concern that increasing prices of crude and other commodities in global markets could add to inflationary pressure in the country.Finance Minister Pranab Mukherjee said at the Annual General Meeting of industry chamber FICCI that the possibility of the global commodity inflation adding to domestic inflationary pressures cannot be ruled out.Mr. Mukherjee said, that the challenge before the government and the Rseserve Bank of India has been to support the recovery process without compromising stability. He said, the task has not been easy, but progress is being made. A day after presenting a growth oriented budget in the Lok Sabha, the Finance Minister said there is a need to improve the supply response of agriculture to expanding domestic demand and significantly enhance investment in the sector by the private and public sector. He further said that as government spending comes down as a part of the fiscal consolidation process, India needs to effect adjustments in the composition of growth on the demand and supply side.

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