Indian government is not sacrificing growth to control inflation, as the economy needed to keep growing at 8% or more.

Mr Montek Singh Ahluwalia deputy chairman of India's Planning Commission told reporters that "We are not sacrificing growth to control inflation. High inflation will kill the medium term growth process. It is important to control inflation while keeping growth at 8%.”

He said that the Indian Economy is expected to expand by 8% to 8.5% range in the fiscal year ending March 2009. He said "We have consistently said the growth target laid by government is 8% to 8.5%. I will not be surprised if it is at the lower end of the range."

Soaring inflation, which hit a 3-½ year high of 7.61 percent in late April, is proving to be a policy headache for India, forcing the government and the central bank to announce a slew of measures to calm prices.