Therefore, speaking on the same context, Reserve Bank of India deputy governor Subir Gokarn said it has become important to remove the issue of inflation from the country.
Insisting that inflation is creating a bottleneck in the country, Gokarn said dealing with inflation in India is important to "recreate" high growth.
The statement was based on the data that showed the country's economic growth slowed to 6.1 percent in the three months to December, the weakest annual pace in almost three years. Adding to the misery, the wholesale price index, India's main gauge of inflation rose unexpectedly to 6.95 percent from a year earlier in February on the back of increased price in vegetables.
Inflation has always remained a concerned for the country. In a bid to tame the menace, the apex bank has raised its policy rates for 13th time since March 2010 to December 2011.
However, with inflation moving taking a downward trajectory, RBI decided paused its rates in the initials months of the new.
Expecting the inflation to maintain its downward track, the market possessed high hopes regarding the apex announcing some cut in the policy rates. However, the hopes were shunned with inflation reviving its upward motion once again.