Finance Minister P Chidambaram has criticised the States for not acting against profiteers and hoarders to check inflation. Addressing the Delhi Economics Conclave in New Delhi today, Chidambaram asked them to deal strictly with hoarding and profiteering. Stating that current inflation is primarily driven by rising prices of vegetables and fruits, he said increasing supplies of food items can help contain it.

The Finance Minister said faster, sustained and inclusive growth must be the strategy for the next five years. He said global economy would witness moderate growth in the coming five years and the US economy growing at three per cent rate during the period can trigger global recovery.

Chidambaram said the government will stick to the path of fiscal consolidation and try to narrow the deficit to three per cent of GDP by 2016-17. He said India would also need to focus on the revenue deficit to ensure that borrowings are not used for consumption. Observing that India cannot afford a high Current Account Deficit, CAD, Chidambaram said the country should avoid importing gold and raw material that are available at home. CAD touched a record 88 billion US Dollar in 2012-13.

Talking about the new game changers of the economy, Chidambaram said they would include Direct Taxes Code, Goods and Services Tax, a higher level of foreign direct investment in insurance and the Indian Financial Code. The proposed code is aimed at streamlining the financial sector.