India must focus on keeping inflation low and avoid using monetary policy alone and short-term government incentives to fuel short-term economic growth, the country`s central bank governor said on Friday.
The government is aiming for an 8-10 percent annual economic growth through supply-side measures to increase the capacity of Asia`s third-largest economy rather than risk higher inflation by stimulating demand, Jayant Sinha, the Minister of State for Finance, said.
With price pressures at record lows, expectations are building that the RBI will lower borrowing costs by at least 25 basis points (bps) at its next policy review on September 29, after three cuts earlier this year.
To achieve economic growth, India needs to strengthen research and development capabilities to become self-sufficient and bring down dependency on other countries for technology, NITI Aayog member V K Saraswat has said.
In an apparent dig at the previous UPA regime, Union Road and Transport Minister Nitin Gadkari on Thursday said lack of appropriate policies forced India's development to take a backseat but now corrective measures are on to propel economic growth.