Inflation will be kept under control

New Delhi:  With a strong note of optimism on the economy, Prime Minister Manmohan Singh on Sunday assured the nation that inflation will be tamed, promised world-class infrastructure to spur growth and announced a new institution to develop high-yielding seeds.

"Today, India stands among the fastest growing economies of the world. As the world's largest democracy, we have become an example for many other countries to emulate," the prime minister said in his Independence Day address.

"We are building a new India in which every citizen would have a stake, an India which would be prosperous and in which all citizens would be able to live a life of honour and dignity in an environment of peace and goodwill."

The prime minister said there were indeed problems like high prices of food items like grain, pulses, vegetables and fruits, which were hurting the poor the most, and underlined that he shared the people's concern.

"I would certainly like to say we are making every possible effort to tackle this problem. I am also confident we will succeed in these efforts," he said.

The Oxford-educated economist prime minister also justified the recent hike in petroleum products and said there was no option before the government given the high cost of crude oil, of which India is a major importer.