Planning Commission declared that the inflation will reduce from double digits to 6 percent by December with the growth rate going up to 10 percent soon.

The overall inflation, continuing the trend of last five months, remained at double digits with 10.55 percent in June.

Montek Singh Ahluwaliah is of the opinion that India can achieve a 10 percent economic growth in soon enough if the governance is correctly made.

The growth of the Indian economy was over 9 percent for the duration 2005-06 and 2007-08. It slowed down in 2008-09 and 2009-10, but is expected to expand at 8.5 per cent in the ongoing fiscal.

Montek said that the monetary policy action taken by the RBI will have effect only after four months. Thus its main impact will be felt in October.

In the first quarter policy review taken by the RBI, the short-term lending and borrowing rates had been increased by 0.25 percent and 0.50 percent respectively.

However, the cash reserve ratio was retained due to the problematic position of liquidity in the markets.

It is expected that the normal monsoon, adequate food grains production, along with the government-released food stocks will aid in the control of inflation.