Modi backs 4 percent inflation target

New Delhi, Aug 15 (IANS) Prime Minister Narendra Modi on Monday strongly favoured the government's 4 percent inflation target with a plus-minus range of two percentage points for the next five years till 2021.

This was done earlier this month under the monetary policy framework agreement with the Reserve Bank of India to ensure macro-economic stability.

"Under the previous government, the inflation level had crossed the 10 per cent mark. But we did not let it rise above 6 per cent," Modi said in his Independence Day speech from the Red Fort.

This had been acheived despite two years of drought, he said.

"Our government faced a lot of challenges in terms of price rise due to two successive years of drought," Modi said.