New Delhi: Expressing concerns over rising prices of essential commodities globally, Finance Minister P Chidambaram today favoured adjustments in domestic policies to contain inflation.

Welcoming a business delegation from Iceland, Chidambaram said, "Universally there is a concern for inflation which is mainly driven by high oil, commodity and food prices."

He said that food price hike is primarily due to increased use of corn in bio-fuel production. Pointing to global oil prices touching new highs, the finance minister said, "It is important to factor in price increase and adjust our policies so that inflation doesn't get out of hand."

Chidambaram also said that fortunately India remains largely insulated from the global turbulence caused by US sub-prime mortgage crisis.
"We cannot afford shocks and major turbulences in our markets, so we are cautious and calibrated in opening up the capital and financial markets. But we have set the course to open up our markets," he added.

Stating that the country's highest priority is infrastructure, he said massive investments have been planned in the sector during the 11th Plan.
"Our infrastructure is good enough to support a growth rate of 5-6 per cent, but not adequate to support 8-9 per cent growth," he said, adding that the country has earmarked to invest 475 billion dollars in infrastructure in the next five-year plan.

He said that bulk of the amount would be raised within the country, "but (there is) still a need to attract $120-130 billion FDI." The country had last year attracted more FDI than the targeted $10 billion, he said.

Source : PTI