Inflation a concern; India heading for better times: PM

Admitting government's failure to contain inflation, Prime Minister Manmohan Singh today said high prices have helped farmers and asserted the country was heading for better times.

"...We have also not been as successful in controlling persistent inflation as we would have wished. This is primarily because food inflation has increased. However, we should remember that our inclusive policies have put more money in the hands of the weaker sections", Singh said while addressing a press conference, the third as Prime Minister.

The worry about inflation, he added, "is legitimate but we should also recognise that incomes for most people have increased faster than inflation."

While making a case for increasing supplies and improving marketing and logistics to contain food prices, especially of perishables like fruits and vegetables, he stressed "much of this work lies in the domain of the states."

As regards the growth, which has slipped to decade's low of 5 per cent in 2012-13, the Prime Minister attributed the slowdown to global factors but exuded confidence that the growth momentum would revive in the coming years.

"We are set for better times. The cycle of global economic growth is turning for the better. Many of the steps we have taken to address our domestic constraints are coming into play. India’s own growth momentum will revive", he added.

He said that during the term of UPA, India for the first time in its recorded history, witnessed a sudden acceleration of economic growth to 9 per cent.

"This exceptional performance was followed by a slowdown initiated by the global financial crisis. Over the past couple of years, all emerging economies have experienced a slowdown. India was no exception", he added.

Singh further added that it was not just the acceleration of growth that "gives me satisfaction. Equally important is the fact that we made the growth process more socially inclusive than it has ever been."