NEW DELHI Feb 18 Monetary authority must abide
by the federal government's policy, India's finance minister
said on Tuesday, adding, in a developing country like India
there must be a balance between price stability and growth.
"I sincerely hope that the next government will also adhere
to that policy. That is a correct policy for a developing
country and a monetary authority must abide by the government's
policy," P. Chidambaram told television news channel ET NOW.
His comments follow a report from a panel set up by the
central bank last month, which suggested the Reserve Bank of
India should pursue managing inflation as its main policy
"There is a clear statement of intent that in a developing
country, this government believes, there must be a balance
between price stability and growth," he said.
"Sometimes, not enough attention has been paid to that
India is among a handful of large emerging economies that do
not target inflation.